Ethereum Buying Pressure Reaches Critical Level Amid Massive Whale Buying
June 11 2024 - 2:00PM
NEWSBTC
Institutional investors have been accumulating Ethereum at a rapid
pace after the SEC’s recent approval of Spot Ethereum ETFs. Crypto
analyst Ali Martinez noted that this accumulation trend has created
buying pressure that could be the much-needed catalyst for Ethereum
to break above the $4,000 price mark. According to a social media
post by Ali Martinez, the number of Ethereum addresses holding over
10,000 ETH tokens has increased by 3% in the last three weeks,
showing a positive trend among large investors. Whales
Accumulating Pushes Ethereum Buying Pressure Speculation over ETF
approvals and increasing institutional buy-in have helped fuel
Ethereum’s price increase earlier this year. The first price surge
occurred in February when multiple reports came out of the SEC
potentially approving Spot Ethereum ETF applications after the
approval of Spot Bitcoin ETFs. Related Reading: Major Bitcoin
Metric Breaks 3-Month Downtrend Amid Bullish Network Recovery This
saw the price of Ethereum surging over 83% throughout the month to
reach above $4,000 again for the first time since 2021. Similarly,
court rulings in May, which increased the odds of Spot Ethereum ETF
approval, pushed the price of ETH above $3,000 again. Now
that the SEC has finally approved these spot ETF applications,
institutional investors are taking the chance to load up their
portfolios with Ethereum. According to Glassnode data, this
accumulation, which has been going on for the past three weeks, has
pushed the number of wallets holding over 10,000 ETH past 975 and
steadily approaching 1,000 addresses. Furthermore, data shows that
the number of ETH mega-whale addresses has steadily increased in
the past 30 days, with the recent metric showing an addition of 15
whale addresses. The number of #Ethereum addresses holding
10,000+ $ETH has increased by 3% in the last three weeks, signaling
an important spike in buying pressure! pic.twitter.com/7qq5HgGP37 —
Ali (@ali_charts) June 9, 2024 On-chain data also reveals that
social sentiment for ETH has stabilized after intense enthusiasm
post-Spot Ethereum ETF approval. However, this hasn’t stopped the
massive withdrawal from exchanges, leading Ethereum to become
scarcer on centralized exchanges. This trend has now seen the
Ethereum balance on centralized exchanges dropping below Bitcoin,
even as Spot Bitcoin ETF wallets also accumulate Bitcoins.
According to Glassnode data, less than 10.56% of Ethereum’s total
supply is currently held on major exchanges. ETH Price
Outlook: What’s Next After Critical Buying Pressure? With whales
doubling down on Ethereum, the buying pressure has reached a
critical point. This surge of interest signals a very bullish
outlook for Ethereum’s price in the coming months, although there
could be short-term volatility. Related Reading: Crypto
Analyst Predicts 800% Rally To $6,000 For BNB, Here’s The Timeline
At the time of writing, Ethereum is trading at $3,527 and has
fallen 3.83% in the past 24 hours. While the increase in buying
pressure is a good start, the bulls still have some work to do to
push Ethereum’s price higher. The first major resistance wall is
around $3,700, where 1.82 million addresses hold 1.8 million ETH.
Featured image created with Dall.E, chart from Tradingview.com
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024