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On June 12, Ether (ETH) saw a surge in demand from long-term holders as its price dropped below $3,500, coinciding with SEC Chairman Gary Gensler’s optimistic outlook on spot Ether ETF approval.
This significant buying activity marked one of the largest accumulation days in Ether’s history, with a 2% price dip within 24 hours.
“Ethereum demand has spiked. Buying by permanent holders was the second highest on record yesterday,” noted CryptoQuant’s head of research Julio Moreno in a June 13 post on X.
Moreno highlighted that on June 12, accumulation addresses acquired 298,000 ETH tokens, valued at approximately $1.34 billion at the time. This figure is just 6% shy of the record set on September 11, 2023, when 317,000 ETH were bought as prices dipped below $1,600.
This surge in demand comes as Ether experienced an 8.49% price decline over the past week. After initially falling below $3,800 on June 8, ETH has struggled to rebound but has maintained a level above $3,400, according to CoinMarketCap data. As of now, Ether is trading at $3,472.
Historical data suggests that the $3,500 mark is a significant resistance level for ETH bulls. A similar price drop on April 11 led to a 25% decline, reaching a low of $2,814 by May 2.
In a related development, SEC Chair Gary Gensler indicated that spot Ether ETFs could receive final approval for trading by the end of September. On June 13, Cointelegraph reported Gensler’s remarks during a Senate Banking Committee hearing, where he forecasted the possibility of the SEC approving spot Ether ETFs within three months.
The SEC had previously granted preliminary approval for spot Ether ETFs in the U.S. on May 23 by approving 19b-4 filings from eight applicants. However, trading will only commence once the S-1 registration statements receive approval.