Ether Despite Price Drop, the native cryptocurrency of the Ethereum network, has witnessed a significant increase in the accumulation of long-term holders, which coincides with a price decline of 2% over twenty-four hours. Julio Moreno, the chief of research at CryptoQuant, recently highlighted the rise in demand for Ethereum in a post published on X. Moreno stated that the amount of Ethereum that permanent holders purchased hit the second-highest level ever recorded.
On June 12, accumulation addresses acquired over 298,000 Ether tokens during twenty-four hours, equivalent to around $1.34 billion at the time of reporting. The previous record for acquisition volume was reached on September 11, 2023, when long-term holders purchased 317,000 Ether when the price dropped below $1,600. This acquisition volume was only 6% lower than the previous record of that day.
Ether Sees 8% Drop in Past Week
The price of Ether Despite Price Drop has dropped by 8.49% during the past seven days, coinciding with the rising cryptocurrency demand. On June 8, the cryptocurrency saw a brief drop below $3,800; nevertheless, according to data provided by CoinMarketCap, it has maintained a price higher than $3,400 throughout this period. As of the time this article was written, the price of Ether was $3,500. According to the price movement that has occurred in the past, the price level of $3,500 has shown to be a sturdy resistance for those who are bullish on Ether.
In related news, Gary Gensler, the United States Securities and Exchange Commission (SEC) chair, has dropped hints about the possibility. Spot Ether exchange-traded funds (ETFs) are being approved for trading by the end of September. Gensler reminded lawmakers of the potential for the regulator to provide final permits for listing and trading shares of spot Ether ETFs over the next three months during a session held by the Senate Banking Committee.
Preliminary regulatory approval for spot Ether exchange-traded funds (ETFs) was given by the Securities. Exchange Commission (SEC) on May 23, approving 19b-4 applications from eight applicants. However, trading will not be able to begin until the S-1 registration statements have also been approved.
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ETF Approval Shows ETH Is Not a Security
As a result of the recent acceptance of spot ETH exchange-traded funds (ETFs), industry analysts believe. Despite the non-security price drop status, Ether has been potentially confirmed. According to media sources, Bloomberg ETF analyst James Seyffart said the approval of these commodity-based trust shares implies. The SEC recognizes Ether as not a security. Furthermore, Seyffart proposed that this recognition may be extended to other tokens as well, establishing the tokens’ status as commodities.
Attorney Justin Browder, who specializes in digital assets, had a sentiment similar to Seyffart’s. He stated that if Ether exchange-traded funds (ETFs) were to gain S-1 approval. This is the final prerequisite for them to begin trading; it would end. The discussion, once and for all, confirms that ETH is not a security. For example, Adam Cochran, a partner at the venture capital firm. Cinneamhain Ventures argued further by stating that similar reasoning might also be used for tokens of other projects.
To create separate exchange-traded funds (ETFs), the Securities and Exchange Commission (SEC) officially authorized 19b-4 applications submitted by VanEck. BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise on May 23. Many exchange-traded fund (ETF) issuers deleted staking from their final modifications, which is noteworthy.
