Ethereum holders are persistently accumulating ETH despite facing unrealized losses, even as the currency trades below its previous highs. Accumulation addresses, indicative of long-term holders, have significantly increased their ETH holdings amidst price drops. While some analysts predict further declines, others see the potential for a substantial recovery, emphasised by bullish signals in recent trading patterns.
A recent post by CryptoQuant highlights that Ethereum (ETH) holders are not losing faith despite facing significant unrealized losses. Particularly, the accumulation addresses—wallets that consistently collect ETH—are still increasing their holdings. This trend is noteworthy as the value of ETH remains significantly below its recent highs.
In December 2024, ETH peaked at approximately $4,107, but has since plummeted over 50%, reaching roughly $1,800. Yet, long-term holders, especially those linked to accumulation addresses, are choosing to hold rather than sell. This steady commitment is evident even as many such addresses entered unrealized loss territory following a drop in value on March 10.
To clarify, accumulation addresses are those wallets that receive and hoard ETH without offloading any, generally belonging to investors who intend to hold for the long haul—typically over 155 days. When they continue increasing their holdings amid declining prices, it often indicates a belief in an imminent market rebound, representing what some call ‘strong hands’ in the trading world.
Also relevant is the concept of Realized Price, which measures the average price at which coins in the network were last moved. This is computed by dividing the total realized market cap by the circulating supply, giving insight into the overall profit or loss status of holders in the market.
Recent figures show that since March 10, the Realized Price has dipped 2.32% from $2,026 to $1,980 by May 3. Yet, intriguing enough, accumulation addresses have significantly increased their ETH holdings during this time. Aleman observed that these addresses jumped from holding 15.5356 million ETH to 19.0378 million ETH—a notable growth of 22.54%.
The question now is whether ETH has reached its bottom in the current market cycle. Some experts predict further falls, suggesting a potential drop to as low as $1,200. However, other analysts maintain that the market may have already hit the cycle’s low point. Supporting the optimistic view, ETH has recently displayed a golden cross on the daily chart, which is often seen as a bullish indicator.
As of the latest update, ETH is trading at approximately $1,801—down 1.4% in the last 24 hours. The sentiment remains mixed, and whether or not an upward rally is on the horizon is anyone’s guess, but accumulation continues relentlessly.
