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Ethereum Price Struggles at $1,770 as Spot Volume Drops and Long-Term Holders Accumulate

Ethereum (ETH) is grappling with a prolonged phase of price stagnation, hovering near $1,770 after sliding 3% over the past week and 1.6% in the last 24 hours. This steady downtrend follows Ethereum’s cycle high of $4,107 in December 2024, with the asset now locked in a broader corrective pattern that has left traders searching for clear direction.

However, while price action remains muted, recent on-chain data reveals intriguing dynamics that could hint at Ethereum’s next move.

Ethereum Spot Volume Declines—but Could Signal Stability

A closer look at exchange data shows that Ethereum’s spot trading volume is steadily shrinking, according to an analysis from CryptoQuant’s Darkfost. Using a bubble chart that maps volume size and change rate, Darkfost notes that ETH’s volume bubbles are growing smaller and lighter in color, indicating lower trade activity and a slowing pace of decline.

While a drop in spot volume typically suggests diminished investor interest or market weakness, Darkfost offers a more nuanced view: in the context of a downtrend, declining volume may actually help stabilize the market.

When fewer sellers remain active, it can reduce the intensity of volatility, possibly preventing large downward swings triggered by sudden liquidation events. Essentially, low volume might be signaling that selling pressure is drying up, making way for consolidation or a potential reversal, though not necessarily right away.

Long-Term ETH Holders Keep Buying Despite Unrealized Losses

Adding to the bullish undertones, another CryptoQuant analyst, Carmelo Alemán, reports that long-term ETH holders steadily increase their positions, even while sitting on unrealized losses.

Alemán points out that wallets classified as accumulation addresses those that consistently receive ETH without selling have continued to add to their balances despite the downturn. After the average realized price of these addresses dropped below ETH’s market value on March 10, these investors technically entered loss territory. Yet, instead of selling, they added over 3.5 million ETH to their holdings between March and early May, growing their total from 15.5 million to 19 million ETH, a 22% increase.

This behavior signals a strong conviction that Ethereum is undervalued at current levels. Historically, such accumulation during corrections has often preceded sharp upward moves, as a reduced liquid supply meets renewed buying interest.

Despite the sideways action, Ethereum’s on-chain story suggests a quiet buildup beneath the surface. With spot volume tapering off and strong hands accumulating, ETH may be primed for a more dynamic phase ahead, though a confirmed trend reversal has yet to materialize.

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