Ethereum has continued to see some weakness ahead of a key support level.
ETHUSD – Weekly Chart
The price of ETHUSD is at an important level with the resistance from 2024 now playing important support. That could be test in the coming days or weeks before any advance is possible.
Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, has said that ETH and its affiliated companies are “cheap” at the moment.
Kendrick has pinned his belief on the fact that Ethereum-based digital asset treasury companies have been strongly buying in the last few months. They have so far bought 2.6% of all ETH in supply since June, with another 2.3% bought by spot Ethereum ETFs. That means 4.9% of ETH has been purchased in the open market in less than three months.
If that rate of buying continues, according to Kendrick, the market would have to buy another 19.6% of Ethereum’s circulating supply in the next 12 months. However, it is always easy to project a trend into the future and ETH needs to hold the support level to avoid a lack of appetite for ETFs.
If the bull theme continued to hold, simply trying to buy even 10% of all ETH supply, would likely lead to demand outstripping the sell side of the order book.
Tom Lee’s BitMine Immersion Technologies was one company buying up ETH with a purchase of another $358.3 million. The company is the largest treasury firm for the world’s second largest crypto.
Meanwhile, whale investors holding 1,000 to 100,000 ETH have increased their positions by 14% over the past five months, according to data firm Santiment.
“In exactly 5 months, they have added 14.0% more coins,” they said on X.
The price of ETH will have to hold the weekly support level in order to keep these trends in motion.
Bitcoin is currently down -1.5% on the week as it tries to secure a low after recent bearish activity. A failure to do so would open up a test of the $100k level.
