Demand for Ether from long-term holders rocketed on June 12 as the price fell below $3,500, just before the SEC’s Gary Gensler gave a forecast for spot Ether ETF approval.

Ether (ETH) has experienced a significant spike in long-term holder accumulation, coinciding with a 2% price drop over 24 hours. This trend was highlighted by CryptoQuant’s head of research, Julio Moreno, in a recent post.

Key Highlights:

1. Significant Accumulation:
- Date of Accumulation: June 12
- Amount Acquired: 298,000 ETH (approximately $1.34 billion at the time of acquisition)
- Historical Context: This was the second-highest day for long-term holder accumulation, just 6% lower than the record set on September 11, 2023, when 317,000 ETH were acquired as the price dipped below $1,600.

2. Price Dynamics:
- Recent Price Decline: Ether has declined by 8.49% over the past seven days.
- Current Price Level: As of the latest data, ETH is trading at $3,472.
- Resistance Level: The area around $3,500 has been a significant resistance point for ETH, with past price actions indicating potential further declines when this level is breached.

3. Market Sentiment and Future Prospects:
- Spot Ether ETFs: There is growing anticipation for the approval of spot Ether exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission (SEC) has granted preliminary regulatory approval for these ETFs and could give final approval for trading by the end of September.
- Impact on Market: The approval of spot Ether ETFs could provide a significant boost to market sentiment and increase institutional investment in Ether.

Analysis:

- Accumulation by Long-Term Holders: The substantial accumulation by long-term holders suggests a strong belief in Ether's future potential, even amidst short-term price declines. This behavior is often seen as a bullish indicator, reflecting confidence in the asset's long-term value.

- Price Resistance: The persistent resistance around $3,500 indicates a critical level for ETH bulls. Breaking through this resistance could signal a potential rally, while failure to do so might lead to further price declines, as seen previously when Ether dropped below $3,500 in April and subsequently fell to $2,814 by May.

- SEC and Spot Ether ETFs: The SEC's potential approval of spot Ether ETFs could be a game-changer. If approved, these ETFs would likely attract substantial institutional investment, thereby boosting Ether's price and market stability.

Conclusion:

Ether's recent accumulation by long-term holders, despite a notable price decline, signals strong confidence in its long-term prospects. The current price resistance around $3,500 is a critical juncture, with the potential approval of spot Ether ETFs by the SEC providing a significant bullish catalyst. Investors should closely monitor these developments, as they could have a profound impact on Ether's market trajectory in the coming months.