Ethereum Spot Volume Declines Amid Increased Accumulation by Long-Term Holders
Ethereum (ETH) is currently trading at $1,770, reflecting a 3% decline over the past week and 1.6% in the last 24 hours. This follows a peak of $4,107 in December 2024, indicating a broader corrective trend.
Ethereum Sees Plunge In Spot Volume
Analyst Darkfost from CryptoQuant reports a consistent decline in Ethereum's spot volume. His analysis shows:
- Bubbles representing spot volume are shrinking and lightening in color.
- This indicates fewer trades and a slowing pace of volume decline.
- Declining spot volume may stabilize the market during corrections.
- Lower volume could mean sellers are exhausting positions, potentially easing downward pressure.
- Caution is advised as cooling volume doesn't guarantee market stabilization or a bottom.
Long-Term Holders Increase Exposure Despite Unrealized Losses
CryptoQuant analyst Carmelo Alemán notes that long-term holders are continuing to accumulate ETH despite unrealized losses. Key points include:
- Accumulation addresses have increased by over 22% from March to early May, rising from 15.5 million ETH to 19 million ETH.
- Average realized price of these addresses fell below the market price on March 10, pushing them into negative territory.
- This accumulation behavior suggests confidence in Ethereum’s value and historically precedes upward price movements.
