As a researcher with extensive experience in the crypto market, I’ve witnessed firsthand the volatility and unpredictability that comes with it. The first half of June was particularly bearish, with Bitcoin hitting a low of $65000 due to several unfavorable updates. Ethereum wasn’t spared either, dropping to a three-week low of $3362 on Friday.
During the initial part of June, the crypto market experienced significant downturn with Bitcoin reaching its lowest point at $65,000 due to multiple unsettling developments. The cryptocurrency scene was marred by concerns over economic macro trends, Bitcoin miners surrendering, outflows from ETFs, and whale distribution that collectively instigated the current correction in prominent cryptocurrencies such as Ethereum. Ethereum plunged to a three-week low of $3,362 on a Friday but has since seen reduced selling pressure over the weekend.
SEC’s Potential ETF Approval and Whale Investments Boost Ethereum Price
In the aftermath of the latest market slump, Ethereum reached a new low point at its previous resistance of $3950 on the daily chart. Despite multiple attempts by coin purchasers, they were unable to surpass this level, signaling an emerging change in investor attitude. Traders have become more inclined towards selling during market upswings.
On the 14th of June, the value of the coin reached a high of $3,887. However, it then went through a substantial decrease of 13.5%, resulting in a low of $3,364. This price is currently aligning with the Ethereum Moving Average (EMA) of 100 days, which is now helping to steady the falling Ethereum price and contribute to its rebound to $3,509. At the same time, the market capitalization has risen to reach a value of $431.2 billion.
The sudden increase in interest may be attributed to SEC Chair Gary Gensler’s latest comments to legislators, implying that the regulatory body could give its approval for listing and dealing with spot Ethereum ETFs as early as this summer.
In addition, Ali, a well-known trader on Twitter (@ali_charts), recently brought attention to an intriguing development in the Ethereum market. Based on his assessment, large Ethereum investors, referred to as whales, have made considerable purchases over the last three weeks. They have acquired over 700,000 ETH, which equates to roughly $2.45 billion in value.
As an analyst, I’ve observed that Ethereum whales have been actively purchasing large quantities of ETH over the past three weeks. The total amount bought amounts to around 700,000 ETH, which translates to a substantial investment of approximately $2.45 billion.
— Ali (@ali_charts) June 15, 2024
Large investors continue to amass a significant amount of Ethereum during this market correction, suggesting they have high faith in the cryptocurrency’s ability to bounce back.
If the wider market downturn continues, the Ethereum price could potentially drop to $3200 and find a floor at the anticipated support trendline. Based on historical data, Ethereum has bounced back three times from dynamic support levels, suggesting significant buying interest among investors.
The daily chart shows a potential new resistance trendline emerging above Ethereum’s price, hinting at a possible sideways trading phase. To reverse this trend, Ethereum must surmount this hurdle and inspire renewed buying energy, potentially pushing the price towards $3900.
Technical Indicator:
- Exponential Moving Average (EMA): The 100-and-200-day EMAs as dynamic support preventing ETH price from a major correction
MACD: A bearish crossover between the MACD (blue) and signal (orange) indicates a seller as the key driving force behind the current price movement.
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2024-06-16 18:38