Ether Sees Significant Long-Term Holder Accumulation Amidst 2% Price Dip

Ether, the native cryptocurrency of the Ethereum network, has experienced a notable increase in long-term holder accumulation, coinciding with a 2% price drop over a 24-hour period.

Surge in Long-Term Accumulation

In a recent post on X, Julio Moreno, head of research at CryptoQuant, highlighted the surge in Ethereum demand, noting that buying by permanent holders reached the second-highest level on record. On June 12, within a 24-hour timeframe, accumulation addresses acquired approximately 298,000 Ether tokens, equivalent to roughly $1.34 billion. This acquisition volume was just 6% lower than the previous record set on September 11, 2023, when long-term holders purchased 317,000 Ether as the price dipped below $1,600.

Price Trends and Resistance Levels

Ether’s increased demand comes amidst an 8.49% price decline over the past seven days. Although the cryptocurrency briefly fell below $3,800 on June 8, it has remained above $3,400 during this period, according to CoinMarketCap data. At the time of writing, Ether is trading at $3,500. The $3,500 price level has proven to be a resilient resistance for Ether bulls, as observed in past price action.

Potential Approval of Spot Ether ETFs

In other news, Gary Gensler, chair of the United States Securities and Exchange Commission (SEC), hinted at the possible approval of spot Ether exchange-traded funds (ETFs) for trading by the end of September. During a Senate Banking Committee hearing, Gensler informed lawmakers of the regulator’s potential to grant final approvals for listing and trading shares of spot Ether ETFs within the next three months. The SEC had previously granted preliminary regulatory approval for spot Ether ETFs on May 23, approving 19b-4 filings from eight applicants. However, trading can only commence once the S-1 registration statements are also approved.

Implications for Ether’s Regulatory Status

The approval of spot ETH ETFs could potentially confirm Ether’s status as a non-security. Bloomberg ETF analyst James Seyffart has stated that the approval of these commodity-based trust shares implies that the SEC explicitly recognizes Ether as not being a security. Digital asset lawyer Justin Browder echoed this sentiment, asserting that if Ether ETFs receive S-1 approval, it would affirm that ETH is indeed not a security. Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, suggested that this recognition could extend to other tokens as well, solidifying their classification as commodities.

Key Developments

On May 23, the SEC officially approved 19b-4 applications from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise for issuing spot Ether ETFs. Notably, several ETF issuers removed staking from their final amendments.