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DailyBubble News

Ethereum long-term holders could play major role in ETH’s price movement in coming weeks

Ethereum long-term holders currently hold 78% of ETH’s total supply, indicating potential price growth in the future. Spot Ethereum ETF issuers are promoting their products as a “tech play” move, while Ethereum options data suggests reduced volatility as ETH aims to reach a new yearly high.

On Friday, Ethereum saw a 2% decrease in price due to increased holdings by long-term holders and ETF issuers launching marketing campaigns. Ethereum’s price dynamics are influenced by the high percentage of ETH supply held by long-term holders, signaling potential price growth in the current cycle.

Long-term holders, who have held onto their tokens for over a year, are accumulating ETH, anticipating higher prices with the launch of spot Ethereum ETFs. This differs from Bitcoin holders, who have been selling their holdings since the beginning of the year.

Additionally, Ethereum options data indicates a potential price increase, with traders bullish on the market. The $4,000 price level is crucial, as it represents a significant amount of calls on Deribit. ETH’s price may see gains as news of spot ETH ETFs saturates the market.

Technical analysis suggests that Ethereum could reach a new yearly high if it surpasses the $3,629 resistance level. Failure to sustain a move above this level could lead to a major correction. Support is seen at the $3,203 level, which is important for the bullish trend to continue.

Overall, Ethereum’s market movement is influenced by long-term holders’ actions, ETF issuers’ marketing strategies, and options data indicating reduced volatility. Traders are optimistic about ETH reaching new highs in the near future.

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