By Denis Mwirigi
Ethereum (ETH) is down 1.18% in the last 24 hours and trading at $3,074 as investors continue buying the dip in hopes of a rally following the launch of spot ETH ETFs expected before the end of July. However, key metrics like break-even prices and Golem sales provide a deeper understanding of what to expect as the launch draws nearer.
According to glassnode, data shows that ETH investors have been accumulating ETH during recent price dips. This behavior can be linked to a strategic move to buy ETH at lower prices in anticipation of a potential rally following the ETF launch.
Source: Glassnode
According to a Santiment tweet, this contract now holds 47.36 million ETH, or about 34% of the entire ETH supply, a significant increase from the 10.9% it held in 2022. This growth in staking shows strong long-term confidence among investors.
While accumulation trends are generally bullish, potential selling pressure from large holders like Golem could counteract some of the positive momentum. Golem which raised 820,000 ETH during its ICO in 2016, has recently been transferring large amounts of ETH to exchanges.
Lookonchain reports that Golem has deposited around 33,600 ETH to exchanges like Binance, Bitfinex and Coinbase over the past six days which indicates a possible selling spree which could introduce significant selling pressure on the market.
Market Sentiment and Price Catalysts
The approval and subsequent launch of spot Ethereum ETFs are expected to serve as significant price catalysts. ETFs offer a regulated and accessible investment vehicle for institutional investors, likely increasing demand for Ethereum and driving prices higher.
Bitwise’s chief compliance officer, Katherine Dowling, has confirmed that the launch is “close to the finish line,” adding to the bullish sentiment.
Investors are already readjusting their portfolios in anticipation of the ETF launch with many buying the dip in hopes of a subsequent rally. In a previous AMBCrypto report, the SEC’s approval of the 19b-4 filings in May was a crucial step and the greenlighting of the S-1 forms will allow trading to commen potentially leading to a significant influx of institutional capital
ETH Technical Analysis
Source: TradingView
Looking at the Technicals, ETH has shown bullish momentum in the last few days after finding support, particularly as it approaches the resistance level at $3,200. This level has proven to be a reversal point, resulting in a consolidation battle between bulls and bears. Who are going to win?
The launch of ETH ETFs could act as a strong price catalyst possibly preventing such a sell-off and driving prices higher.
On the downside, the $2,800 to $3,000 range serves as a crucial support zone. If ETH breaches this support, it could drop to around $2,650 and invalidate hopes for recovery soon.
Source: Coinglass
On the other side according to coinglass liquidation data, a rebound from this support level could propel the altcoins king to a new recovery phase potentially triggering a liquidation of short positions and further upward momentum.
