Ethereum shows resilience above $3,100 amid significant whale activity and the anticipated approval of a spot Ethereum ETF. Tron founder Justin Sun leads the accumulation, while technical indicators suggest bullish potential despite market volatility.

• Ethereum price holds steady above $3,100. 

• Massive whale activity, particularly by Justin Sun who purchased ETH worth $5 million.

• Potential spot Ethereum ETF approval within two weeks drives significant Ethereum accumulation and deposits on exchanges.

Justin Sun’s ETH accumulation | Source: X

Tron founder Justin Sun has been actively buying Ethereum. On-chain data provider Spot on Chain reported that Sun spent $5 million USDT to acquire 1,614 ETH at $3,097 per token. Since February 8, he has accumulated 362,751 ETH across three wallets, totaling an estimated $1.1 billion at an average price of $3,047 per ETH. Additionally, Sun recently deposited 45 million USDT to Binance, suggesting potential future acquisitions.

Read more: Spot Ethereum ETFs by July? SEC Chair Gensler Confirms Progress on Approval

Whale Activity Before Spot Ethereum ETF Approvals

Justin Sun's significant purchases worth $5 million come ahead of the anticipated spot Ethereum ETF approval, expected by the end of July. Alongside Sun's activity, other whales have been moving substantial amounts of ETH. Elwood Technologies has also been active, depositing 26,811 ETH worth over $84 million to Binance in the last three days, though some addresses related to Elwood have withdrawn 24,463 ETH during the same period.

However, Golem, which raised 820,000 ETH through an ICO in 2016, has been selling off ETH. Golem (GLM) is a decentralized computing network that allows users to rent out their unused computing power to others who need it for various tasks. Often described as the "Airbnb for computers," Golem aims to create a global supercomputer accessible to anyone. The project was founded by Julian Zawistowski, Piotr Janiuk, and Andrzej Regulski and launched its ICO on November 11, 2016, raising 820,000 ETH in under 30 minutes, equivalent to approximately $8.6 million at the time​. 

They transferred 40,000 ETH to an address and deposited 3,000 ETH worth $9.3 million to Binance, Bitfinex, and Coinbase recently. Golem has deposited about 32,000 ETH to exchanges in the past six days. However, Golem has stopped selling and is now staking 40,000 ETH, according to a report on FXStreet.

ETH/USDT price chart | Source: KuCoin 

Despite massive whale activity, Ethereum's price remains steady above $3,100. Technical indicators suggest that the bottom might be in. ETH's price is up 2.3% as investors buy the dip, anticipating a rally following the spot ETH ETF launch.

Ethereum faces key resistance at $3,200. Currently trading around $3,140, up 1.2%, ETH's total liquidations in the past 24 hours are at $33.58 million. The long and short ratio has increased to 0.989, indicating a reduction in bearish sentiment. However, the Fear and Greed Index remains at 29, showing persistent market fear despite increasing whale accumulation.

Crypto fear and greed index | Alternative.me 

On the downside, the $2,800 to $2,852 level remains key support. In the short term, ETH could bounce off the $3,064 level, where $3.32 million ETH longs risk liquidation.

Into The Block's data shows that over 5.6 million addresses broke even after ETH reached $3,000, potentially leading to some selling. However, a catalyst like the ETH ETF launch could prevent such a move. ETH may face resistance at $3,200, with approximately 2 million addresses likely to sell if they break even.

Accumulation and Staking Activity Increaes Ahead of ETH ETF Approval

Ethereum new accumulation addresses | Source: CryptoQuant 

Data from CryptoQuant shows increased Ethereum accumulation, with investors viewing the dip as a buying opportunity. Some of these purchases have flowed into staking platforms. The Ethereum 2.0 staking contract now holds 47.36 million ETH, about 34% of ETH's entire supply, more than tripling its holdings from 11% in 2022.

As the potential launch of spot ETH ETFs nears, investors are adjusting their portfolios. Bitwise Chief Compliance Officer Katherine Dowling confirmed that the launch is "close to the finish line." The SEC approved spot ETH ETF issuers' 19b-4 filings in May but needs to greenlight their S-1s before trading can begin. 

Wall Street's Take on Cryptocurrency ETFs

Wall Street is preparing for new cryptocurrency ETFs, with spot ether ETFs potentially hitting the market soon, pending SEC approval. Bitwise Asset Management's Matthew Hougan views this as the birth of a new asset class. He expects these ETFs to attract significant investment, mirroring the success of spot bitcoin ETFs, which have garnered about $15 billion since their launch.

“If you want to invest in the growth of tokenization, ethereum is like the picks and shovels play,” Mathew Hougan of Bitwise Asset Management said. “It underpins all of it. … I think that is going to appeal to a lot of people.”

Ethereum is showing resilience amid market volatility and significant whale activity. With the anticipated spot Ethereum ETF approval, the market is gearing up for potential bullish momentum. Investors and traders are closely watching key resistance and support levels as ETH continues its steady climb. However, market conditions remain uncertain, and potential investors should consider the inherent risks and conduct thorough research before making any investment decisions.