Ethereum’s Next Upturn: 3 Key Factors

Ethereum has been in a downward trend since the end of May, trading around $3,400 at the time of writing, despite seeming poised to break the $4,000 valuation. However, on-chain data suggests a more positive outlook. Three recent developments paint a promising picture for the smart contract platform.

Firstly, the number of Ethereum on central exchanges has fallen to a five-year low, indicating that investors are choosing to hold onto their digital coins rather than selling. This suggests that they expect the price to rise.

Secondly, whales are buying Ethereum en masse. As of May 25, a group of large owners has purchased over 700,000 Ethereum, worth almost $2.4 billion. The behavior of whales is often seen as important, as they often have extensive market insights and their purchases indicate confidence in future price increases.

Finally, there has been an increase in Ethereum futures open interest (OI). The rise from $15.06 billion on June 14 to approximately $16.15 billion indicates a significant increase in trading activity. A higher open interest indicates more demand for leverage in the market, which in turn suggests confidence in an upward price trend.

Analysts are also pointing to the recent passage of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) as a reason to be bullish. Experts such as Michaël van de Poppe and Bloomberg analyst Erich Balchunas expect the launch of the ETFs in July to support an upward trend.

Read Also:  Cinven Acquires 70% Stake in Idealista for €2.9 Billion

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here