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Can Ethereum (ETH) Price Mirror May’s 27% Gain Again This Month?
During the last month of May, the Ethereum (ETH) price clocked a strong 27% gain with most of them coming in the last ten days following the approval of the spot Ethereum ETF. While ETH consolidates around $3,800 levels, on-chain developments suggest a major price boost going ahead.
Ethereum Whale and Institutional Interest Growing
As per data from CryptoQuant, ever since the approval of the spot Ethereum ETF on May 23, more than 800,000 Ethereum coins have moved off exchanges in the last ten days. CryptoQuant reports that either whales or institutions have been preparing for the spot Ethereum ETF to go live for trading.
Thus, this particular investor cohort could be behind moving these ETH off exchanges thus moving them to self-custody. This lower exchange supply is a bullish indicator since fewer coins would be available for selling. furthermore, the percentage of Ethereum supply at the exchange has dropped to the lowest in many years, currently at 10.6%.
Furthermore, the beacon-chain data shows that the Ethereum staking activity has picked up pace again since May 30. Starting from May 30, a significant number of investors initiated coin staking activities following a three-day period of withdrawals. This withdrawal streak led to the total staked amount dropping to a weekly low of 32,193,980 ETH.
In the past 72 hours alone, staking deposits on the beacon chain increased by 175,358 ETH. At present market prices, these recently staked coins hold a value of approximately $661 million.
ETH Price To New All-Time High
After last week’s sell-off, the Ethereum (ETH) price has been holding strong support at $3,750 and faces resistance at $3,830 on the upside. Once it crosses this, the ETH price could be eyeing a move above $4,000 and further to its new all-time high levels.
Last week, Bloomberg’s ETF analyst Eric Balchunas stated that there’s a legit possibility of getting the spot Ethereum ETF approved by June end. Furthermore, some market analysts also believe that the ETH price could break past its all-time high of $,4870 once the spot Ethereum ETF starts trading, amid the demand pressure, similar to what happened after the Bitcoin ETF launch. However, some market analysts believe that the Ethereum ETF will see only 20% inflows to that of spot Bitcoin ETFs.
On the other hand, investors would have some concerns about Grayscale’s Ethereum Trust (ETHE). If ETHE, with over $11 billion in AUM, becomes a spot Ethereum ETF, it could also face outflows similar to GBTC.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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