Summary
Ether has seen a 2% gain in the past 24 hours, despite other major tokens experiencing pull-backs. However, on-chain analysis suggests there may be a risk of short-term price correction due to the high circulating supply of ether in profit. This could encourage traders to take profits and impact the price of the digital asset. Nonetheless, the recent approval of spot bitcoin ETFs by the SEC has raised speculation that a spot ether ETF could also be approved soon, which would be bullish for ether. Additionally, the high circulating supply in profit could be seen as a stabilizing factor for the token.
Key Points
1. Ether has made gains of almost 2% in the past 24 hours, despite major tokens posting sharp pull-backs. On-chain analysis suggests possible short-term price correction risks for the second largest digital asset by market cap.
2. The Securities and Exchange Commission’s approval of multiple spot bitcoin ETFs has contributed to Ether’s rally above the $2,600 mark.
3. The circulating supply of Ether in profit is currently at 89.4%, the highest since 2021. This elevated supply in profit could lead traders to take profits, potentially impacting the short-term price of Ether. However, the recent high in circulating supply in profit can also be seen as a stabilizing factor for the token.