Ethereum accumulation wallets have increased by over 22% despite falling prices, prompting confidence among long-term holders. Analysts expect Ethereum to rise significantly, with targets of $7,000 by 2025 and $10,000 by early 2026. Market signals suggest a potential recovery phase is underway as buyers outstrip sellers.
A recent analysis shows that Ethereum accumulation addresses are on the rise, increasing by 22.54% despite significant unrealized losses among holders. Ethereum’s price has slid from its December 2024 peak of $4,107 to about $1,787, yet this hasn’t deterred long-term investors from acquiring more of the cryptocurrency. Instead, many have actually boosted their holdings, signalling confidence in Ethereum’s future.
Ethereum, after hitting a cycle high of $4,107, is currently down over 56% since that time. Interestingly, rather than cutting back on their investments, many holders—particularly those with accumulation wallets—have opted to purchase more. These wallets have been active even as Ethereum faced losses. Accumulation addresses represent holders who retain their ETH for at least 155 days without transferring it, and most have now found themselves in the red since March 10, when Ethereum hit a low of $1,866. The average price that these holders invested, referred to as the Realized Price, is around $2,026.
From March 10 to May 3, the Realized Price dipped by 2.32%, from $2,026 down to $1,980. Despite this, the Ethereum held by accumulation wallets increased from approximately 15.54 million ETH to nearly 19.04 million ETH, according to insights from Carmelo Aleman of CryptoQuant. Aleman emphasised that even though the price trend has been down, the commitment from these holders remains intact, with many looking to buy more. This behaviour hints that investors are gearing up for a significant market shift.
Additional signs from the derivatives market support this bullish sentiment. Analyst Darkfost from CryptoQuant observed a diminishing selling pressure in recent weeks. Notably, the net taker volume turned positive on April 23 and 24, signalling that buyers may be outpacing sellers. Should this momentum continue, Ethereum could potentially be positioning itself for a market low and a subsequent rebound.
On May 6, a trader known as “Crypto Eagles” shared insights on platform X, suggesting that Ethereum is navigating through a three-phase market cycle. The initial corrective phase was evident in 2022, while we’re currently in a recovery phase that began in 2023. The trader anticipates that a strong impulsive phase will commence in 2025, projecting Ethereum could soar past $7,000 in 2025 and possibly reach $10,000 by the first quarter of 2026.
If accumulation trends persist and the selling pressure continues to ease, these optimistic forecasts could very well come true. Current market participants might interpret the existing downward trend not as a negative signal but rather as a precursor to a robust rally. The confidence exhibited by dedicated long-term holders highlights a community largely unfazed by temporary losses, focusing instead on potential long-term rewards.
