Ethereum experienced a sharp decline in price, dropping to a 25-day low of $3,428 on June 13, 2024, as the market reacted to the US Fed rate pause announcement. On-chain data indicators suggest that further downside movement may be on the horizon.
The price of Ethereum fell below the $3,500 mark for the first time since the approval of ETFs. Despite outperforming the market average in the past month, thanks to positive news regarding ETF approvals from the US SEC, the delay in the official market listing of these ETFs has led to a decline in investor confidence.
Following the announcement of a hawkish rate pause by the US Fed on June 14, Ethereum saw a significant price drop of 9.71% within the week. This downward trend eroded most of the gains made after the ETF approval. The delay in the launch of the ETFs has impacted demand for Ethereum, leading to the risk of further price declines.
Data from Santiment indicates that long-term holders of Ethereum have been actively selling their coins, as evidenced by the decline in Mean Coin Age. This suggests that these investors are taking advantage of the recent price surge to offload their holdings. With more coins in circulation, Ethereum’s price is likely to face increased volatility in the coming days.
It is important to note that the information provided in this article is for informational purposes only and should not be construed as financial advice. Readers are advised to conduct their own research before making any investment decisions.