Grayscale’s Ethereum (ETH) fund has recently made headlines as it approaches its yearly highs, despite a significant decline in the price of Ether itself, which has dropped by over 20%.
In the past, approximately 5.1 million ETH were acquired at prices in the low $1,600s. This suggests that this particular price range has historically served as a strong support level for the cryptocurrency. When ETH’s price dipped to this range, buyers stepped in to accumulate, showing confidence in its value at this level.
Sharing their insights, Into The Block wrote, “Large ETH holdings are causing price consolidation in a tight range due to significant acquisitions both in the low and high $1,600 ranges.”
On the flip side, approximately 6.5 million ETH have been purchased at prices in the high $1,600s. These holdings create a significant resistance zone, as those who bought at these levels may be looking to exit the market and minimize their losses. This resistance can act as a barrier preventing the price from surging beyond this range.
The current state of the market indicates that buyers and sellers are engaging in transactions within a relatively narrow price range. This range happens to coincide with the concentration of ETH positions acquired at specific price levels.
Grayscale’s Ethereum Trust has been recognized as the second-largest holder of Ethereum (ETH) globally by Arkham Intelligence in a tweet from September 1. The trust holds approximately $5 billion worth of ETH. This comes after a legal victory on August 29 when courts overturned an earlier rejection by the U.S. Securities and Exchange Commission (SEC). This legal outcome means the SEC must review Grayscale’s proposal to convert its GBTC fund into a Bitcoin ETF, although approval is not guaranteed.
Source: coinpedia.org