Ethereum Accumulation Address Holdings Rise 60% in Five Months
Ethereum (ETH) corrected 19.5% to $3,100 after a crypto market price drop last week. Over the previous two days, the popular cryptocurrency has only exhibited little resiliency, increasing over 5%. Recent wallet activity statistics gives Ethereum's long-term prospects an optimistic outlook.
Ethereum HODL Addresses Gain 16% Supply Dominance
CryptoQuant analyst MAC_D gave encouraging Ethereum market observations in a QuickTake article.
From August to December, Ethereum Accumulation Addresses increased 60%, according to the crypto industry expert. During this period, HODL wallets increased their ETH supply from 10% to 16%, or 19.4 million ETH of 120 million.
To clarify, Accumulation Addresses are Ethereum wallets that seldom trade. They indicate long-term investment and confidence.
MAC_D says the high growth of Ethereum HODL wallet holdings is unique to bull cycles. This large accumulation rate was due to investors' strong hopes of the US Donald Trump administration, the expert said.
Our expectations include better rules for the DeFi business, a big part of Ethereum. Thus, these long-holding wallets will likely keep adding to their holdings in expectation of future price rise regardless of Ethereum's price.
These Accumulation Addresses are also important since Ethereum has never dropped below its realized price, according to MAC_D. Therefore, these wallets' continual purchases have a strong long-term price increase potential.
Next for ETH?
MAC_D cautions that macroeconomic variables will likely have a greater impact on Ethereum's price in the near term, as seen by the recent market drop caused by possible 2025 interest rate reduction.
After a 3.07% drop in 24 hours, the cryptocurrency trades at $3,352. Daily ETH trading volume is down 53.25% to $31.15 billion.
Ethereum lost 14.74% and 1.05% in the previous week and month on bigger charts after recent price drops.
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