Ethereum’s price remains relatively stagnant around $1,770, down 3% weekly. Spot trading volume is declining, indicating fewer trades, which may stabilise the market despite lower investor interest. Long-term holders continue to accumulate ETH, showing confidence even amid unrealised losses, with addresses increasing their balances significantly. Historical trends suggest this accumulation can lead to positive price movements.
Ethereum (ETH) has been experiencing a relatively stagnant period recently, trading at approximately $1,770. Over the past week, the cryptocurrency’s value has dropped 3%, and a slight 1.6% decline has been noted just in the past 24 hours. This decline continues the broader correction since its cycle peak of $4,107 back in December 2024, raising questions about market direction and momentum.
On-chain data indicates some significant shifts as Ethereum’s spot volume shows a consistent downward trend. Analyst Darkfost from CryptoQuant reported this decline through a bubble chart, where the bubble size represents the spot volume and its colour indicates the rate of change. This data illustrates that volume is decreasing, as indicated by the diminishing size and lighter hues of the bubbles.
Typically, a drop in spot volume may imply waning investor interest or weakness in market momentum; however, Darkfost sees it differently during this corrective phase. He posits that lower volume in a downturn could help stabilise the market and minimize sharp volatility spikes triggered by larger sell orders. This reduction might also signal sellers retracting, which could create an environment more conducive to price stability and consolidation going forward.
Yet, Darkfost was careful not to indicate that this cooling of volume signals a market bottom. Rather, it may just represent a temporary lull in volatility before the next significant market movement unfolds.
Meanwhile, in regards to long-term holders, analyst Carmelo Alemán has reported an uptick in accumulation activities among Ethereum investors, who continue adding to their holdings despite facing unrealized losses. These accumulation addresses— wallets that regularly receive ETH with minimal selling— are perceived as individuals with strong resolve and extended investment timelines.
A pivotal moment occurred on March 10, when these accumulation addresses saw their average realised price dip below the current market price of ETH, pushing many into the red. Despite this setback, accumulating addresses increased their holdings by over 22% from mid-March to early May, rising from 15.5 million ETH to 19 million ETH. This ongoing accumulation demonstrates a strong belief in Ethereum’s value at current levels, with historical precedence suggesting that such behaviour often leads to eventual upward price movements.
In an environment where market supply diminishes during accumulation periods, favourable conditions may emerge for a rally when demand eventually increases. Overall, while Ethereum’s current spot volume trend and long-term holder activity signal complex dynamics, they reflect a cautious optimism that may affect future price performance.
