Ethereum

Token

Accumulate

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum witnessed its second-largest buying day, with significant accumulation by long-term holders.</li>
 <li>Contrarily, open interest and exchange reserves show a cautious market outlook, hitting an eight-year low.</li>
</ul>
Despite a recent 8% decline, <a href="https://coineagle.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a> 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.
<h2 id="long-term-holders-accumulate-amid-price-fluctuations">Long-term Holders Accumulate Amid Price Fluctuations</h2>
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.
<h2 id="market-caution-and-technical-outlook">Market Caution and Technical Outlook</h2>
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.

Unraveling the Mystery: Surge in ETH Token Purchases Over a Single Day

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CoinEagle.com

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