- Ethereum accumulation addresses grew 22.5% despite prices dropping over 56%.
- Long-term holders remain confident, increasing exposure amid unrealized losses.
- Bullish sentiment rises as data hints at a market reversal.
Ethereum investors are showing resilience in the face of mounting unrealized losses, as long-term holders continue to accumulate the asset despite a significant price drop since its recent peak.
According to on-chain data, accumulation addresses, wallets known to be purchasing and keeping Ethereum in their wallets for at least 155 days without any movement, isn’t just holding firm, they’re increasing their exposure.
Despite these coins plummeting more than 56% from their December peak of $4,107 to a current price of about $1,787, these selling holders have racked up more than 22% in their collective stash over just two months.
Ethereum Accumulators Add 3.5M ETH
Data provided by CryptoQuant contributor Carmelo Aleman shows that accumulation addresses have accumulated over 3.5 million additional Ethereum (ETH) from 15.5 million ETH on March 10 to over 19 million ETH on May 3.
Realized Price of these wallets decreased from $2,026 to $1,980 during that period, meaning that many holders became in unrealized losses. Although, these experienced investors, rather than hiding, have doubled down.
Even if the downtrend continues and even while in unrealized losses, accumulating addresses have not changed said Aleman. Rather, they boosted their ETH exposure.
Historical relationship shows heavy accumulation during downtrends leading bulls to assume that this is a signal that investors were preparing for a break-out, something market analysts also see it as a possibility.
Ethereum Market Cycle Enters Recovery Phase
CryptoQuant’s derivatives market analyst Darkfost added that a recent change in sentiment supported this view. A net taker volume another indicator of buy sell pressure in futures, i.e., buyers outweighing sellers is now positive, according to data, as buyers appear to be starting to outpace sellers on the April 23 and 24.
Sentiment from social media is also bullish. On X (formerly Twitter), a popular trader, “Crypto Eagles,” wrote Ethereum is in a three phase market cycle. It should experience a corrective phase in 2022, a recovery phase through 2023 and 2024 and then an anticipated impulsive phase from starting 2025. The ETH trader hopes ETH could rise above $7,000 later this year, as high as $10,000 by early 2026.
While such forecasts are speculative, the vote of long term holders is a very strong signal. As they continue to be confident in the face of a prolonged downturn, it appears they believe in Ethereum’s underlying strength and likely further expect a future rally.
While Ethereum’s price could stay down for the time being, their most devoted holders seem unconcerned, continuing their preparation for what they expect to be a landmark flip in the landscape of the market.
