Ethereum (ETH) corrects 19.5% to $3,100 after last week’s cryptocurrency market price plunge. Over the past two days, the popular cryptocurrency has shown little resilience, gaining more than 5%. Recent wallet activity statistics give an optimistic outlook for Ethereum in the long term.
Ethereum HODL Addresses Achieve 16% Supply Dominance
CryptoQuant analyst MAC_D gave encouraging comments about the Ethereum market in a QuickTake article.
From August to December, Ethereum staking addresses increased by 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 from 120 million.
To clarify, accumulation addresses are Ethereum wallets that are rarely traded. They indicate long-term investment and trust.
MAC_D says that the high growth in Ethereum HODL holdings is unique in bull market cycles. These high rates of accumulation were the result of strong investor hopes for the US administration of Donald Trump, the expert notes.
Our forecast includes better rules for DeFi coins, which is a big part of Ethereum. Therefore, these long-term wallets are likely to continue adding to their holdings in anticipation of future price increases regardless of the Ethereum price.
These cumulative addresses are also important because Ethereum has never fallen below its perceived price, according to MAC_D. Therefore, the continued purchases of these wallets have a strong potential to drive prices higher in the long run.
What's next for ETH?
MAC_D warns that macroeconomic variables are likely to further impact Ethereum’s price in the near term, as evidenced by the recent market decline triggered by the possibility of interest rate cuts in 2025.
After a 3.07% drop in 24 hours, the cryptocurrency is trading at $3,352. ETH’s daily trading volume has dropped by 53.25% to $31.15 billion.
Ethereum has lost 14.74% and 1.05% in the past week and month on the larger charts after recent price declines.$ETH