Cryptocurrencies

298,000 ETH traded in 24 hours, what’s going on?


There is growing demand for Ethereum (ETH) on central trading platforms as the adoption of the spot ETF fuels bullish sentiment. According to Julio Moreno, head of research at CryptoQuant, demand for Ethereum has increased significantly.

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Ethereum purchases break record

Like Moreno noted, Ethereum purchases by permanent holders on June 13 marked the second-highest purchase ever, with a total of 298,000 ETH acquired. This is not the first time Ethereum has exhibited intense buying behavior. Ethereum’s all-time high purchase date was on September 11 last year, when a total of 317,000 ETH were purchased in 24 hours.

Anticipating institutional capital

The explanation for this increased purchasing momentum is obvious. Ahead of the arrival of institutional capital, which may show a strong affinity for spot Ethereum ETFs, most retail investors are already taking positions. This is an important coping mechanism for the intense liquidity war that could soon erupt.

Price drop offers buying opportunity

The current accumulation gives current holders a significant edge should the price of Ethereum soar to new highs. An intriguing trend observed in Ethereum is the price drop over the past week. The coin is down 6.83% in the last seven days and the June 13 accumulation comes at a time when the coin is trading at a deep discount. The accumulation has seen a slight trend reversal, up 0.6% at the time of writing to $3,519.20.

What to expect from Ethereum

In addition to the numerous upgrades the Ethereum protocol has undergone over the past year, the most important event to look forward to is the approval of S-1 registrations for the spot Ethereum ETF product. While the timeline remains speculative, the start of trading in Ethereum ETFs will herald a new era for the coin and likely expose it to an intense rally.



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