Over 700,000 ETH Acquired in Three Weeks: Will Ethereum Regain Momentum?
Over the past three weeks, more than 700,000 ETH (approximately $2.45 billion) have been acquired. According to data from cryptocurrency analytics platform Santiment, despite this buying spree, Ethereum is struggling to regain its bullish momentum. Currently, the leading altcoin is trading at $3,562 on the Bitstamp exchange, after hitting an intraday low of $3,360 on June 14.
CryptoQuant analyst ShayanBTC suggests that Ethereum’s downward trend may continue in the near term due to heavy selling by futures traders. Ethereum, along with Bitcoin, experienced a price rise on Wednesday following better-than-expected U.S. inflation data. However, cryptocurrencies fell along with other risk assets after hawkish comments from Federal Reserve Chairman Jerome Powell, which cast doubt on the possibility of several rate cuts this year.
Could ETFs Be a Bullish Catalyst:
Last month, the U.S. Securities and Exchange Commission (SEC) unexpectedly approved several 19b-4 filings for Ethereum exchange-traded funds (ETFs), causing a significant market surge. On May 27, Ethereum nearly reclaimed the $4,000 level due to investor enthusiasm. However, this excitement quickly waned once market participants realized that the SEC had not yet approved S-1 registration forms that would allow these products to start trading.
During a recent congressional hearing, SEC Chairman Gary Gensler stated that final approval for Ethereum ETFs would occur over the summer. Despite this, banking giant JPMorgan recently poured cold water on the outlook for Ethereum ETFs, predicting they will attract only modest inflows.
Read more Rising Demand for Ethereum (ETH) on Centralized Exchanges Driven by ETF Approval Optimism
In conclusion, while the approval of Ethereum ETFs holds the potential to be a bullish catalyst, the immediate future of Ethereum’s price remains uncertain due to ongoing market dynamics and regulatory developments.
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