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June could be ETH’s time to shine through and this is why…

2min Read

The Hong Kong green light for crypto starting June may pave the way for an influx of liquidity but it may not necessarily be immediate. However, strong organic demand for cryptocurrencies, especially ETH, may not be expected immediately.

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  • Ethereum will be among the 12 cryptocurrencies that will benefit from Hong Kong’s pro-crypto move in June.
  • ETH concludes may with a false positive for the bulls.

Hong Kong might be about to shake things up in the crypto world and Ethereum [ETH] will likely be among the biggest beneficiaries. China’s love-hate relationship is currently in a favorable swing and might even mark the start of the next bullish wave.

ETH might be about to catch a ride with the bull in June thanks to Hong Kong. This is because the Chinese administrative region will open its doors to retail investing for multiple top cryptocurrencies including ETH.

Is your portfolio green? Check out the Ethereum Profit Calculator

The latter will likely be among the biggest beneficiaries because it already has a great head start and a robust ecosystem.

So, why is Hong Kong’s decision to embrace crypto important for the crypto community? Well, Hong Kong represents a gateway for Chinese liquidity to access foreign or international markets.

More importantly, China contributed a massive amount of liquidity that drove prices up during previous bull runs. Now that the same gateway is opening up to crypto once again, we will likely see a demand resurgence.

Will June be a bullish month for ETH?

The Hong Kong green light for crypto starting in June may pave the way for an influx of liquidity but it may not necessarily be immediate. However, organic strong demand may not be expected immediately since exchanges will be required to make applications for their services and be vetted in Hong Kong. This means incoming demand for ETH will more likely be gradual rather than immediate.

As far as the current state of ETH demand was concerned, there were some interesting observations. ETH’s exchange reserves have been shrinking for most of May. However, we did observe a slight uptick from 28 May.

ETH exchange reserves

Source: Santiment

Lower exchange supply reflected that there was significant demand even though it may not have reflected on the price. Speaking of price, ETH recently experienced a slight uptick in the last five days but it was short-lived. ETH was ending May with a resurgence of sell pressure which already ate into some of its recent gains. It exchanged hands at $1865 at the time of writing.

ETH price action

Source: TradingView

Despite the performance, ETH’s exchange flows suggested that it might kick off June with a surge in volatility. Especially an increase in exchange inflows which may explain the slight surge in exchange reserves at the end of May. Exchange flows cooled down significantly in May compared to April.

ETH exchange flows

Source: CryptoQuant


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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