Ethereum holding addresses have been experiencing a significant increase since August, indicating strong institutional interest and increasing market confidence.
Investors have a more optimistic outlook on Ethereum’s potential, bringing with it a notable increase in address ownership, creating an exceptional trend when compared to previous cycles.
“Despite recent price volatility, demand for ETH remains strong,” said CryptoQuant analyst Mac D, noting the robust accumulation trend among investors.
The increase in Ethereum’s accumulation addresses suggests that market sentiment is rising; while prices may be volatile, the long-term growth potential remains solid.
According to the latest data from CryptoQuant, there is a noticeable increase in Ethereum storage addresses, and this is a sign of an important trend in the crypto world. As of August 2024, a strong increase in these addresses was observed, leaving behind previous accumulation cycles. Ethereum storage addresses increased by 60%, from 10% to 16% of the total ETH supply between August and December 2024. This is a total of 19.4 million ETH tokens added, highlighting the change in investors’ strategies and sentiments.
Recent accumulation trends can be linked to positive expectations from many stakeholders for pro-crypto policies that have the potential to improve market conditions. Despite Ethereum’s current volatility, investors are emphasizing that smart money is showing a strong commitment to acquiring and holding the asset.
While there is a possibility of a correction in the market due to broader economic factors, Ethereum’s long-term outlook remains promising, especially as the total holdings continue to increase, suggesting that the altcoin has healthy growth potential.
The increase in accumulation in Ethereum is directly related to the recent price fluctuations. The value of Ethereum rose from a significant bottom of $2,116 to $4,109 during the accumulation period, reflecting the increase in investor confidence.
As of press time, Ethereum is trading at around $3,504 and has gained more than 5% in just 24 hours. This upward price action is becoming more evident with the Taker Call/Sell ratio rising to 1.08, suggesting that buyers are currently more aggressive than sellers and that demand is outpacing supply.
This aggressive buying sentiment is reinforced by the optimistic outlook among the trades, with 51% of traders currently holding long positions, suggesting that market participants are expecting further gains in Ethereum’s price, potentially paving the way for a strong rally.
The accumulation increase in Ethereum suggests that the altcoin has the potential for further expansion. As investors increase their ETH holdings, buying pressure will lead to a supply squeeze, putting upward pressure on prices.
If this trend continues, Ethereum could retest the $3,713 level as the number of accumulation addresses increases. However, if corrections occur, a pullback to the $3,300 level could also be seen in the short term.