Ethereum Accumulation Addresses Reach $78 Billion Amid ETF Inflows
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently under analysis as market metrics indicate potential future movements.
Data from CryptoQuant highlights accumulation patterns and ETF inflows, offering insights into Ethereum’s trajectory amid its relative underperformance compared to Bitcoin.
Trends in Accumulation and ETF Inflows
CryptoQuant analysts shared findings on social media regarding Ethereum’s key metrics. Accumulation addresses now hold approximately 19.5 million ETH, valued at around $78 billion.
In contrast, Bitcoin's accumulation addresses hold about 2.8 million BTC, worth $280 billion. The value of Bitcoin held is four times that of Ethereum, consistent with their market capitalizations, providing insights into investor behavior.
Additionally, Ethereum-focused ETFs have seen significant inflows, with notable spikes of $1.1 billion on November 11 and $839 million on December 4, 2024.
These inflows suggest strong institutional buying interest, indicating growing appeal among large-scale investors.
The Ethereum ETF has seen steady inflows in recent months.
Key spikes on:
Nov 11, 2024: $1,100M
Nov 21, 2024: $754M
Nov 25, 2024: $629M
Nov 27, 2024: $883M
Dec 4, 2024: $839MThese inflows reflect strong buying pressure. pic.twitter.com/OIwWNmRPYB
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Despite these ETF inflows, Ethereum’s price movements are less pronounced than Bitcoin’s. Historically, Ethereum peaks follow Bitcoin peaks; during the 2021 bull run, Bitcoin reached an all-time high with a 480% gain, while Ethereum peaked later with a 1,114% increase. Currently, Ethereum shows underperformance, indicating a shift in market dynamics.
Taker Volume and Potential Growth
Analysts noted concerns regarding Ethereum’s taker volume, which reflects aggressive buying and selling activity.
Ethereum’s taker-seller volume recently reached a record low of -400 million, indicating aggressive selling. This pattern resembles those observed before its ATH in 2021. Although current selling pressure appears bearish, it may signal a market nearing a critical pivot point.
Ethereum Taker Volume is at its lowest level on record.
Ethereum’s price weakness is due to high taker-seller volume, now at a record low of -400 million, indicating aggressive selling.
A similar pattern occurred before Ethereum’s peak in May 2021. Despite this, there may still… pic.twitter.com/OmRYvAzjxI
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Analysts concluded that Ethereum’s underperformance does not exclude the potential for substantial growth. The relationship between accumulation patterns, ETF inflows, and taker volume suggests possible upward momentum.
Featured image created with DALL-E, Chart from TradingView