Ethereum Permanent Holders Scoop 298K ETH In A Day, ETH Price Rally Soon?

All eyes are currently on Ethereum as the U.S. Securities and Exchange Chairman Gary Gensler stated that the approval of the spot Ethereum ETF will happen by the end of this summer. Although this news brought some optimism to the ETH community, it has yet to reflect in the Ethereum price which is trading under $3,500 as of press time.

Ethereum Demand Skyrockets

Julio Moreno, the head of research at CryptoQuant stated that there’s a significant surge in the Ethereum demand currently in the market. As per Moreno, the permanent ETH holders bought a staggering 298,000 ETH yesterday, making this the second-highest daily purchase on record.

The record for the highest daily buying remains on September 11, 2023, as of now, when the ETH holders scooped 317,000 ETF. However, even the current spike in Ethereum demand highlights the growing interest and confidence among long term investors in the crypto market.

The massive surge in demand for Ethereum has come as the ETH price has corrected more than 9% in the past seven days. However, as we saw, the on-chain metrics continue to show strength for the world’s second-largest cryptocurrency.

As reported by CoinGape, Ethereum’s withdrawal from the Coinbase exchange surged to a massive 300K, thereby making it one of the largest outflows in 2024. With this, the total value of the Ethereum withdrawal has surged past $1 billion.

ETH Price Action Ahead?

Despite the positive on-chain indicators, the ETH bulls haven’t gained enough control to trigger a rally past $4,000. Currently, Ethereum is trading just under its crucial support zone of $3,500.

Last time, the ETH price dropped under $3,500 back in April, it led to a 25% decline hitting the low of $2,814 by May 2. All eyes will be on how swiftly the SEC chair gives a go-ahead to the spot Ethereum ETF to go live for trading. This is likely to infuse major capital inflows as we saw after the approval of the spot Bitcoin ETF.