Investors have strategically profited from a 2 percent drop in Ethereum’s price in 24 hours, resulting in its second-highest day in long-term accumulation by Ethereum holders.
Julio Moreno, head of research at CryptoQuant, highlighted in a June 13 X-post that 298,000 Ether tokens worth about $1.34 billion were purchased by accumulation addresses on June 12. This amount was only 6% below the record set on September 11, 2023, when 317,000 Ether were purchased when the price fell below $1,600.
The 8.49 percent price drop in Ether over the past week was the catalyst for this buying activity. According to data from CoinMarketCap, Ether was trading at $3,472 after falling below $3,800 on June 8 and struggling to recover while remaining above $3,400.
This price level of around $3,500 has been a significant resistance point for Ether in the past, with previous price moves in this area leading to further declines, such as a similar drop below $3,500 on April 11, which resulted in a 25% drop to $2,814 by May 2.
During a Senate Banking Committee hearing on June 13, SEC Chairman Gary Gensler suggested that spot ether exchange-traded funds (ETFs) could receive final trading approval by the end of September, with the SEC potentially signing off on approvals within three months.
The SEC granted preliminary regulatory approval for spot ether ETFs on May 23, approving 19b-4 applications from eight applicants. However, trading cannot begin until S-1 registration statements are also approved.
This increase in long-term holder activity and potential regulatory progress point to a pivotal moment for Ether and its investors.
Also read: Bitcoin and Ethereum balances hit 4-year low before July 2020
