Key Points
- Ethereum witnessed its second-largest buying day, with significant accumulation by long-term holders.
- Contrarily, open interest and exchange reserves show a cautious market outlook, hitting an eight-year low.
Despite a recent 8% decline, Ethereum has shown interesting market trends.
In the last 24 hours, Ethereum’s trading price rose slightly by 0.3%, reaching $3,519.
This small increase occurred amidst overall market uncertainty, especially after the U.S. Securities and Exchange Commission approved spot Ethereum ETFs in May.
Long-term Holders Accumulate Amid Price Fluctuations
Ethereum saw a significant rise in long-term holder accumulation during these price changes.
CryptoQuant’s head of research, Julio Moreno, reported that Ethereum had its second-largest buying day by long-term holders.
On June 12, around 298,000 Ethereum tokens, worth approximately $1.34 billion, were bought by these investors, capitalizing on a 2% price dip within 24 hours.
This accumulation was close to the record set on September 11, 2023, when 317,000 Ether tokens were bought as prices fell below $1,600.
This strategic buying during price drops indicates the confidence long-term investors have in Ethereum.
Additionally, this trend aligns with an increase in large transactions over $100,000, as demonstrated by IntoTheBlock data.
This data shows that transactions rose from below 4,000 earlier in the week to over 6,000, indicating active accumulation by whales.
Market Caution and Technical Outlook
In contrast to this bullish accumulation activity, Ethereum’s market metrics such as open interest and trading volume present a more cautious outlook.
Ethereum’s open interest has decreased by nearly 2% to $15.41 billion, while trading volume has declined by 25.77%, now standing at $24.19 billion.
These metrics suggest a cautious stance among some market participants.
On the technical front, Ethereum’s failure to exceed its March highs has triggered a sell setup on its daily chart.
However, a shorter-term perspective from the 4-hour chart suggests a potential temporary rise to around $3,800.
Another important aspect of market dynamics is the amount of Ethereum held on exchanges, which has reached an eight-year low.
This decrease in exchange-held Ethereum, combined with the launch of spot ETFs, could lead to a significant supply shock, potentially triggering a sharp price increase.
