Ether (ETH) experienced a dip to $3,363 on June 16 after a 15% decline from $4,000. The second-largest cryptocurrency in terms of market capitalization has seen a 4% decrease over the past week.
Recent data from Cointelegraph Markets Pro and TradingView reveals that Ether’s price is hovering around $3,518, which is approximately 14% lower than its peak of $4,091 on March 12.
Despite this drop, Ether seems to have found support around the $3,500 mark, and various technical and onchain indicators suggest a potential upward movement for Ether.
One of the factors contributing to Ether’s positive outlook is the decreasing supply on exchanges. Onchain data from CryptoQuant shows that the amount of Ether held on exchanges has hit a five-year low of 16.7 million ETH following a 9.3% decline over the last 90 days.
The balance between inflows and outflows in centralized exchange wallets indicates a significant decrease between May 20 and June 14, coinciding with a surge in Ether’s price during the same period. This suggests that investors may be moving their tokens into self-custody wallets, indicating their reluctance to sell in anticipation of a potential price increase.
Furthermore, there has been a noticeable increase in accumulation by large holders in recent weeks, as highlighted by data from market intelligence firm Santiment, showing a rise in wallets holding between 10,000 and 100,000 ETH since May 25.
The approval of spot Ether exchange-traded funds (ETFs) in the United States has not led whales to sell their holdings, but rather to continue accumulating, indicating their confidence in further gains.
Another positive indicator for Ether is the spike in open interest in ETH futures, which has risen from $15.06 billion on June 14 to around $16.15 billion currently. This surge in demand for leveraged ETH positions suggests growing optimism among investors for a potential spot Ether ETF launch in the near future.
From a technical standpoint, the recent drop in ETH’s price has been accompanied by a bullish divergence between its price and the relative strength index (RSI) in the four-hour timeframe, indicating a potential reversal in the downtrend.
The historic approval of spot Ether ETF applications by the SEC on May 23 led to a significant price rally for Ether, with market participants eagerly awaiting the launch of these ETFs, potentially by July 2.
In conclusion, while market participants anticipate the launch of spot Ether ETFs and a possible increase in Ether’s price, it is important to note that all investment and trading decisions involve risk, and readers are advised to conduct their own research before making any decisions.