- The holding of Ethereum accumulation addresses has surged 60% since August 2024
- Volatility has driven the price action of Ethereum in the past 48-72 hours
Since reaching a recent high of 4,109 USD, the price chart of Ethereum (ETH) has witnessed a strong correction from the market. In fact, before recovering to the current level where it has gained more than 7% in 24 hours, this altcoin had dropped to a low of 3,095 USD.
This market adjustment has prompted many Holders to speak up. According to analysis by Mac D from CryptoQuant, this adjustment may have been driven by macroeconomic factors.
However, at the moment, some recovery signals are emerging, and Ethereum investors continue to accumulate this altcoin.
Surge in Ethereum Accumulation Address Holdings
According to CryptoQuant, Ethereum accumulation addresses have increased significantly recently, surpassing previous cycles.
Based on this analysis, accumulation addresses have recorded a strong increase in August, rising to 16% or 19.4 million ETH Tokens out of the total Ethereum supply of 120 million ETH. In terms of growth rate, this increase represents a 60% increase from 10% to 16% from August to December 2024. This surge is unprecedented in previous ETH cycles.
This surge in ETH holding addresses has underscored the widespread market expectations of Trump's cryptocurrency development policy. At the same time, it also implies that despite the high volatility of the altcoin, savvy investors continue to accumulate ETH.
Although a market correction is likely in the short term due to macroeconomic factors, the long-term growth potential remains high. This is because investors continue to buy ETH and the number of accumulation addresses continues to increase.
Impact on the Altcoin's Price
As predicted, the increase in accumulation has had a significant impact on the ETH price chart. For example, during this accumulation period, ETH has risen from a low of 2,116 USD to a high of 4,109 USD.
In fact, at the time of writing, Ethereum is trading at 3,504 USD, after gaining more than 5% in the past 24 hours.
Source: CryptoQuant
The driving force behind the price increase here is primarily driven by the increase in buying pressure. We can see this phenomenon through the increase in the Taker Buy Sell ratio, with this ratio rising to 1.08 at the moment.
This increase implies that buyers are becoming stronger than sellers. Therefore, demand may be outpacing supply right now.
Similarly, this buying pressure can be interpreted as a sign of current optimism. This growth is evidenced by investors increasing their long positions. At the time of writing, long position holders are dominating with a 51% ratio - a sign that most traders anticipate further growth.
In conclusion, as investors continue to accumulate Ethereum, this altcoin may be in a good position to grow further. As more investors increase their holdings, it stimulates higher buying pressure, which could lead to a tightening of supply. Conditions like these put positive pressure on the altcoin's price.
Therefore, if accumulation addresses continue to increase, ETH could reach 3,713 USD again. Conversely, a similar Dump as seen a few days ago could cause Ethereum to fall to 3,300 USD.
