Rising Demand for Ethereum (ETH) on Centralized Exchanges Driven by ETF Approval Optimism
There is an increasing demand for Ethereum (ETH) on centralized trading platforms as the anticipation for the approval of a spot Exchange Traded Fund (ETF) boosts bullish sentiment. According to Julio Moreno, Head of Research at CryptoQuant, the demand for Ethereum has surged significantly.
Record-Breaking Ethereum Purchases:
Moreno highlighted that long-term holders conducted the second-largest Ethereum purchase ever on June 13, acquiring a total of 298,000 ETH. This surge is not unprecedented for Ethereum, which has seen intensive buying activity in the past. The highest recorded purchase took place on September 11 last year, with a total of 317,000 ETH acquired within 24 hours.
The rationale behind this increased buying momentum is not difficult to grasp. As institutional capital, potentially very favorable towards the Ethereum spot ETF, prepares to enter the market, many individual buyers are positioning themselves accordingly. This is a crucial adaptation mechanism in the face of an intense liquidity battle that could soon unfold.
The ongoing accumulation by current holders could provide a significant boost if Ethereum’s price ascends to new highs. Interestingly, Ethereum’s price has dropped over the past week. The cryptocurrency fell by 7.60% over the subsequent seven-day period, and the accumulation on June 13 occurred as the coin was heavily discounted. This led to a moderate reversal in trend, with Ethereum’s price increasing by 0.6% at the time of this report to $3,519.20.
Read more SEC Expected to Approve Ethereum Spot ETFs by Summer, Says Chair Gary Gensler
Key Events and Considerations for Ethereum:
Among the various developments welcomed by the Ethereum protocol in the past year, the most significant event to watch is the approval of S-1 filings for an Ethereum ETF product. The initiation of Ethereum ETF trading would mark a new era for the cryptocurrency, potentially setting it up for substantial gains.
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