Institutional investors purchase 298,000 ETH as spot ETF trading approaches, indicating a bullish outlook amidst market volatility.

Key Points

- Ethereum (ETH) has dropped 15% since March 2024, but on-chain data suggests rising demand.

- Institutional investors, or "permanent holders," bought a record 298,000 ETH on June 12, signaling strong demand.

- This purchase is the second-highest daily buy, close to the all-time high of 317,000 ETH on September 11, 2023.

- The surge in demand indicates bullish sentiment, with institutions taking advantage of lower prices.

- The approval of spot Ethereum ETFs in the US is expected to boost liquidity and attract institutional investment.

- The SEC has approved 194-b forms for spot Ethereum ETFs, with BlackRock awaiting approval for its S-1 filing.

- Trading is expected to begin this summer, with JPMorgan predicting it will happen "well ahead of November."

Market Analysis

- Despite the recent dip, on-chain data points to a bullish picture, with institutional investors buying up ETH.

- The large purchase on June 12 indicates that institutions are taking advantage of lower prices, signaling a potential bottom.

- The daily chart shows a resistance level at $3,700, with a potential re-test of $3,300 if the dump continues.

- The approval of spot Ethereum ETFs is expected to boost liquidity and attract institutional investment, which could lead to a price increase.

Conclusion

The recent purchase of 298,000 ETH by institutional investors suggests a bullish outlook for Ethereum amidst market volatility. With spot ETF trading expected to begin this summer, the demand for ETH is likely to increase, potentially leading to higher prices. However, the current market weakness and potential re-test of $3,300 indicate that caution is still necessary.