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▲ Ethereum (ETH)/ChatGPT Generated Image
Ethereum (ETH) plunged 21.6% in June, facing a massive sell-off from retail investors and risk-off pressure from the US market simultaneously, but whale accumulation and increased staking are partially absorbing the downward pressure.
According to crypto media outlet FXStreet on July 4 (local time), Ethereum dropped 21.6% in June, marking its largest monthly decline since November last year. The outlet analyzed that risk-off sentiment and increased volatility following the October 10 plunge drove the June weakness, with selling pressure from retail investors and US market participants being particularly strong.
Wallets holding 100-1,000 ETH and 1,000-10,000 ETH dumped a total of 510,000 ETH into the market last month. This group of investors consistently reduced their holdings after the October 10 plunge, with the reduction amounting to 3.91 million ETH during this period. In contrast, whale wallets holding 10,000-100,000 ETH engaged in bargain hunting in June, accumulating an additional 600,000 ETH.
A significant portion of the whale accumulation flowed into staking. The supply of staked Ethereum increased by approximately 763,000 ETH last month, reaching an all-time high of 40.5 million ETH. Investors have newly staked 4.5 million ETH this year. The media evaluated that long-term holders are choosing a strategy of earning profits and waiting for recovery rather than exiting the market.
Weak demand in the US market also exacerbated the June downturn. The Coinbase Premium Index, which reflects US investor sentiment, fell to -0.169, its lowest level since February. Ethereum spot ETFs recorded net outflows for four consecutive weeks in June, with the net outflow amounting to approximately $529 million. In the derivatives market, Ethereum futures open interest decreased by 1.46 million ETH.
The technical trend is a battle between a short-term rebound and overhead resistance. Ethereum has broken above the $1,741 resistance level and is maintaining above the 20-day exponential moving average of $1,676. However, the 50-day exponential moving average of $1,810 and the 100-day exponential moving average of $1,984 are capping the upside. If a daily close above $1,806 is confirmed, $1,984, $2,019, and $2,108 are presented as the next resistance levels. On the downside, if $1,676 is breached, $1,524, $1,405, and the long-term base line of $1,156 are mentioned as sequential support levels.
[Key Article Summary]
-Ethereum dropped 21.6% in June, recording its largest monthly decline since November last year.
-Retail investors sold 510,000 ETH, but whales accumulated 600,000 ETH, and staked ETH reached an all-time high of 40.5 million ETH.
-Ethereum spot ETFs recorded approximately $529 million in net outflows in June, with the $1,806 and $1,810 range presented as short-term resistance levels.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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