• Ethereum ETFs close to finish line, says Bitwise executive.
  • Ethereum investors are buying the dip despite FUD from potential Golem selling spree.
  • Ethereum bearish pressure has slowed, but key resistance could prove critical ahead of ETH ETF launch.

Ethereum (ETH) is up 2.3% on Wednesday as investors continue buying the dip in hopes of a rally following the launch of spot ETH ETFs. However, other key metrics like break-even prices and Golem sales provide a deeper understanding of what to expect as the launch draws nearer. 

Daily digest market movers: Ethereum accumulation, Golem sales

With the potential launch of spot ETH ETFs drawing closer amid the wider market stagnancy, investors are readjusting their portfolios. Bitwise chief compliance officer Katherine Dowling confirmed that the launch is "close to the finish line."

"We're seeing in the S-1 amendments that there are fewer and fewer issues that are being vetted back and forth between issuers and the SEC," said Dowling in a Bloomberg interview.

"So that points all signs in the direction that we are close. We're close to the finish line on the launch," she added.

The Securities & Exchange Commission (SEC) approved spot ETH ETF issuers' 19b-4 filings in May, but the agency needs to greenlight their S-1s before the products can begin trading.

Ethereum's recent descent saw more investors accumulating the altcoin, as revealed in CryptoQuant's data. These investors are considering the dip as an opportunity to purchase ETH at a discount before ETH ETFs launch in tandem. The lower ETH goes, the more investors buy.

ETH New Accumulating Adresses Balance

ETH New Accumulating Adresses Balance

Santiment data shows that some of these purchases have been flowing into staking platforms. The Ethereum 2.0 staking contract now holds 47.36 million ETH or about 34% of ETH's entire supply. Notably, the contract's holdings have more than tripled from just under 11% of ETH's supply it held in 2022.

ETH2 Beacon Deposit Contract

ETH2 Beacon Deposit Contract

Meanwhile, Golem, which raised 820,000 ETH through an ICO in 2016, has been on a potential selling spree. After transferring 40,000 ETH to address "0x159a", the address deposited 3,000 ETH worth $9.3 million to Binance, Bitfinex and Coinbase in the past few hours, according to Lookonchain. Golem has deposited about 32,000 ETH to exchanges in the past six days.

ETH technical analysis: Ethereum faces a key resistance at $3,200

Ethereum is trading around $3,130 on Wednesday, up 2.3% on the day. ETH's total liquidations in the past 24 hours are at $33.58 million, with long and short liquidations accounting for $23.18 million and $10.40 million, respectively, according to data from Coinglass.

ETH's long and short ratio shows traders are slowly reducing their bearish sentiment as the ratio has increased to 0.989. However, Ethereum's Fear and Greed Index is at number 30, indicating fear persists in the market despite increasing accumulation from whale addresses.

Into The Block's data shows that more than 5.6 million addresses broke even after ETH reached $3,000, a potential sell sign for these addresses.

It could be that whales bullish on the ETH ETF approval accumulated selling pressure from retail traders who potentially sold off their tokens after ETH reclaimed the $3,000 psychological level. 

As ETH's price slowly tilts toward the upside, it may face a resistance at the $3,200 level. According to IntoTheBlock, approximately 2 million addresses that purchased ETH around this level could sell if they break even. However, a price catalyst like the ETH ETF going live can prevent such a move.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

On the downside, the $2,800 to $2,852 level remains a key support if the bearish pressure increases.In the short term, ETH could bounce off the $3,064 level, where $3.32 million ETH longs risk liquidation.

Ethereum FAQs

Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.

Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.

Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.

Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP