Ethereum (ETH), the undisputed leader of altcoins, has shown extremely volatile price movements over the past month. ETH experienced a 30% rise during the ETF approval period but saw an 8% decline in the past 7 days. In the last 24 hours, Ethereum’s price increased by over 1%, trading at $3,500. This price level reflected on the charts following news related to S-1 forms.
Ethereum Comments
During this period of price volatility, the number of investors with long-term goals in Ethereum was also rising. According to Julio Moreno, a notable figure from CryptoQuant, the second-largest buying day in history by long-term Ethereum holders occurred.
On June 12, approximately 298,000 Ethereum, valued at around $1.34 billion at that time, were purchased by large investors who capitalized on the 2% dip that day. This purchase was not much lower than the 317,000 Ethereum bought on September 11, 2023, when ETH’s price fell below $1,600.
Generally, these purchases are considered a reflection of long-term confidence in a cryptocurrency. Additionally, data from IntoTheBlock showed an increase in transactions valued over $100,000. Transactions, which were daily 4,000 at the beginning of the week, exceeded 6,000 by the week’s end.
The Future of Ethereum
Despite the rise in Ethereum and the increasing accumulation activities of investors, the stagnation in Ethereum’s open interest rate is noticeable.
In the last 24 hours, open interest in Ethereum saw a 2% decrease, dropping to $15.41 billion. However, trading volume increased by 10%, rising significantly to $15 billion.
Considering the decline in open interest, it is interpreted that investors still expect a price correction.
Analyses suggest that the fact that Ethereum did not reach its ATH during BTC’s ATH period in March or after the ETF news may indicate that investors still expect a decline.
Despite all this, a supply shortage in ETH could occur due to strong purchases linked to the expected launch of spot Ethereum ETFs, potentially leading to further price increases.
