Ethereum’s Spot Volume Decline: A Silver Lining for the Future?

Ethereum’s spot trading volume has dropped significantly, indicating slowed market activity, yet some analysts view this as a positive correction rather than a sign of decreased investor interest. Key signals indicate long-term holders are accumulating Ether, suggesting confidence in its future value. The MVRV Z-score is in territory that has previously indicated market bottoms, and Ethereum’s decreasing exchange reserves could enhance its scarcity, influencing a potential price surge.

Ethereum (ETH) has seen a slump in its spot trading volume, which is evident as the latest figures show shrinking bubbles indicating reduced activity in the market. Currently, the cryptocurrency is trading around $1,842, remaining significantly lower—by about 55.15%—than its peak of $4,107 reached in December 2024. However, beneath this surface-level stagnation, there are important shifts happening that could influence Ethereum’s next moves.

A recent report from crypto analyst Darkfost of CryptoQuant points to a consistent decline in Ether’s spot trading volume. Using a bubble chart to illustrate volume changes, he notes a clear trend: trading activity is dwindling, but at a slowing pace. While this drop might initially appear alarming, Darkfost suggests it might be a necessary market correction. Less trading volume during downturns could actually stabilise prices, as it implies fewer sudden sell-offs could occur.

In his view, the pause in trading could indicate that sellers are either done unloading their assets or hesitating to do so further. This cooling off period might present an opportunity for price consolidation, potentially creating a healthier market structure without intense downward pressure. Darkfost also cautions that while volume reductions don’t necessarily indicate a market bottom, they serve as a crucial metric to watch in these uncertain times.

On a brighter note, some analysts are spotting signs of potential recovery. Trader Coinvo highlights that Ether’s Market Value to Realized Value (MVRV) Z-score has recently fallen into the green zone, between 0 and -1, a historically significant range that often indicates market bottoms and impending reversals. He postulates that Ether might currently be undervalued and preparing for a notable price rally.

Supporting this optimistic view, data from CryptoGoos indicates that Ethereum inflows into accumulation addresses, or wallets typically associated with long-term holders, have surged to levels not seen before in 2025. This surge in accumulation suggests a level of confidence from long-term investors in Ethereum’s potential resilience and value, even as its price wanes.

In addition, CryptoGoos points out Ethereum’s reserves on exchanges have decreased to multi-year lows. Having fewer tokens on exchanges means reduced immediate selling pressure, which can limit the supply available for quick trades. This situation may contribute to Ethereum’s scarcity narrative and could help fuel its price momentum in the near future.

Analyst Crypto Rover has also drawn parallels between Ethereum’s current situation and Bitcoin’s trajectory in 2021. If Ether’s pattern continues to mirror Bitcoin’s, there’s a chance it might achieve a new all-time high in the coming months.

Thus, while the spot trading volume for Ethereum continues to decline, other indicators—like accumulation trends and diminished exchange reserves—hint at an underlying optimism. Although the immediate market may seem stagnant, there’s a sense that long-term holders are strategically positioning themselves for better days ahead.