Ether (ETH) experienced a decline to a low of $3,363 on June 16, dropping by 15% from $4,000. The second-largest cryptocurrency by market capitalization has seen a 4% decrease over the past week.
According to data from Cointelegraph Markets Pro and TradingView, Ether’s price is currently hovering around $3,518, marking a 14% decrease from its multi-year high of $4,091 set on March 12.
Despite this downward trend, Ether seems to have found support at the $3,500 level, with various technical and on-chain indicators suggesting a potential upside for the cryptocurrency.
One key factor contributing to Ether’s potential upside is the decreasing supply on exchanges. CryptoQuant data shows that Ether balances on exchanges have reached a five-year low of 16.7 million ETH after a 9.3% decrease over the past 90 days.
The reduction in ETH supply on exchanges indicates that investors may be moving their tokens to self-custody wallets, hinting at a reluctance to sell in anticipation of future price increases. This is supported by a surge in accumulation by large holders in recent weeks.
Additionally, there has been a significant increase in Ether futures open interest, with data from CoinGlass showing a rise from $15.06 billion on June 14 to around $16.15 billion. This spike in open interest suggests a growing demand for leveraged ETH positions.
Market participants are eagerly awaiting the launch of spot Ether ETFs following the historic approval of applications by the United States Securities and Exchange Commission (SEC) on May 23. Analysts are eyeing a possible launch date of July 2 for the spot Ether ETFs to begin trading in the U.S.
Overall, market optimism and expectations surrounding the launch of spot Ether ETFs, along with technical indicators pointing to a potential price increase, are driving confidence in Ether’s future performance.