Ethereum Price Prediction: Get Ready For a Wild Ride as ETH Sell Pressure Surges, Causing Increased Volatility Ahead
The price of Ethereum dropped sharply to a 25-day low of $3,428 due to increased market volatility after the US Federal Reserve’s announcement to pause interest rate hikes. On-chain data trends indicate a potential further decline in price.
Ethereum’s price fell below $3,500 for the first time since the approval of Ethereum ETFs. Despite initially outperforming the market following the approval by the US Securities and Exchange Commission (SEC) in late May, the delay in the official launch of the ETFs has negatively impacted investor sentiment.
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Following the US Federal Reserve’s announcement of a hawkish rate pause on June 14, the price of Ethereum experienced a significant downturn, dropping by 9.71% within the week. This reversed most of the gains made after the ETF approval. The price temporarily touched $3,362 before rebounding to around $3,550 as of June 15.
Notably, the delay in launching the ETFs has led to a decline in demand for Ethereum, as evidenced by the drop in Santiment’s Mean Coin Age data, which tracks the average holding period of ETH coins. This data showed a substantial 10% decline in the mean coin age from May 29 to June 15, indicating increased selling activity among long-term Ethereum investors.
The selling trend among long-term holders, who had previously held their coins for over a year, suggests that they have been taking advantage of the price surge following the ETF approval. This increase in available circulating coins is likely to contribute to higher price volatility in the near future.
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