Story Highlights
- Ether investors are buying the dip! Long-term holders accumulated the second most Ether Soars Despite Price Dip.
- Spot Ether ETF approval is on the horizon by September, potentially solidifying Ether’s status as a non-security.
- This news is fueling investor confidence, with some experts believing it could pave the way for similar classification of other cryptocurrencies.
Ether (ETH), the backbone of the Ethereum network, is experiencing a surge in long-term holder buying even as its price dips. This counterintuitive trend suggests investors see long-term value in ETH despite short-term price fluctuations.
Surge in Long-Term Holdings
Data from CryptoQuant reveals a surge in Ether accumulation by long-term holders, reaching the second-highest level on record on June 12th. These “permanent holders” acquired a staggering 298,000 ETH tokens, roughly $1.34 billion at the time. This buying spree falls just 6% short of the all-time high set in September 2023 when the price dipped below $1,600.
Price Dip Amidst Broader Market Downturn
This accumulation comes despite an 8.49% price decline for ETH over the past week. While the price briefly dipped below $3,800 on June 8th, it has found support around $3,400. This price point has proven resilient in the past, suggesting underlying bullish sentiment.
The recent news regarding the potential approval of spot Ether ETFs by the SEC by September has further bolstered investor confidence. During a Senate hearing, SEC Chair Gary Gensler hinted at the possibility, following the granting of preliminary approvals for 19b-4 filings from eight applicants in May. Final approval hinges on S-1 registration statements.
Industry experts view the potential approval of spot Ether ETFs as a potential confirmation of Ether’s classification as a commodity, not a security. Bloomberg’s James Seyffart suggests this approval implies the SEC recognizes Ether as a non-security, potentially paving the way for similar classification of other tokens.
Digital asset lawyers like Justin Browder believe final S-1 approval would definitively settle the debate around Ether’s status as a non-security. Venture capitalist Adam Cochran suggests this logic could extend to tokens of other projects as well.
With long-term holder accumulation surging and potential spot ETF approval looming, the future of Ether appears bright, despite short-term price fluctuations.
