Ethereum’s price stagnation continues, currently at $1,770, down from a high of $4,107 in December 2024. Spot volume is declining, interpreted by some analysts as a potential stabilising factor rather than a signal of reduced interest. Long-term holders are actively accumulating ETH despite losses, increasing their positions by over 22%, indicating a belief in Ethereum’s undervaluation and potential for recovery.
Ethereum (ETH) is currently experiencing a notable price stagnation, trading at around $1,770. Over the past week, the asset has decreased by 3%, with a smaller dip of 1.6% in the last 24 hours. This trend continues the broader correction observable since its peak of $4,107 back in December 2024. While price fluctuations remain minimal, some interesting undercurrents may soon affect market activity.
According to analyst Darkfost from CryptoQuant, Ethereum’s spot volume is steadily declining. He’s analysed this through a bubble chart, where the bubble sizes relate to spot volume, and their colours indicate the volume change rate. The results show a gradual reduction in both the size and colour intensity of the bubbles, pointing towards fewer trades and a slowing pace of volume reduction.
This drop in spot volume might typically hint at waning investor interest or a lack of momentum, but Darkfost takes a different stance in light of current market conditions. He notes that declining spot volumes can serve a stabilising role amid downturns, potentially lowering the chance of volatile sell-off spikes. The muted trading could suggest that sellers may be either finishing selling off positions or choosing to wait, possibly allowing for better price stability to emerge in the short term.
However, Darkfost is careful to caution that a cooling off in volume doesn’t imply the market has reached its lowest point. Instead, it might merely signal a brief lull in volatility ahead of another significant move.
On another front, CryptoQuant’s Carmelo Alemán has taken a deep dive into the behaviours of Ethereum’s long-term holders. Despite facing unrealised losses, several ETH investors are continuing their accumulation. These accumulation addresses—wallets that regularly receive ETH without substantial selling activity—are typically viewed as having a solid, long-term strategy.
A key date identified was March 10, when the average realised price for these accumulating wallets dipped below the market price of ETH, pushing them into a negative balance. Yet, despite the unfavourable conditions, the data reveals that these addresses boosted their holdings by over 22% between March and early May, from 15.5 million ETH to 19 million ETH.
This trend indicates a significant level of conviction, as it appears long-term holders feel that Ethereum is undervalued at its current trading price. Historically, such accumulation behaviour during market downturns often precedes significant price recovery, as a dwindling supply on the market may set the stage for upward pressure when demand eventually returns.
