Ethereum’s Bullish Signs Amid Market Turmoil
Despite a general crypto market price fall in the past week, Ethereum (ETH) has recorded a significant price correction of over 19.5%, finding support at a local bottom of $3,100. Since then, the prominent altcoin has only shown slight resilience, rising by over 5% in the past two days. However, recent data on wallet activity provides much cause to be bullish on Ethereum’s long-term future.
Ethereum HODL Addresses Increase Supply Dominance To 16%
A recent QuickTake post by CryptoQuant analyst MAC_D highlights some positive insights on the Ethereum market.
The report shows that the balance of Ethereum Accumulation Addresses has surged by a remarkable 60% from August to December. During this time, these HODL wallets have boosted their portion of ETH supply from 10% to 16%, i.e., 19.4 million ETH out of 120 million ETH.
The Accumulation Addresses are wallets that hold Ethereum but rarely move or sell their holdings. They are considered a measure of long-term investment and confidence.
MAC_D attributes the rapid increase in these Ethereum HODL wallets’ holdings to investors’ bullish expectations of the incoming Donald Trump administration in the US. These expectations include more favorable regulations on the DeFi industry, which represents a major sector of the Ethereum ecosystem.
Regardless of Ethereum’s current price movement, these long-holding wallets are likely to keep increasing their holdings in anticipation of future price growth.
In addition, MAC_D emphasizes the importance of these Accumulation Addresses in that the price of Ethereum has never slipped below their realized price. Therefore, a continuous purchase by these wallets provides a high potential for a long-term price gain.
What’s Next For ETH?
Regarding Ethereum’s immediate movement, MAC_D warns that macroeconomic factors are likely to exert a stronger influence on ETH’s price in the short-term, as illustrated by the recent price crash induced by potential reduced interest rate cuts in 2025.
At the time of writing, the altcoin trades at $3,352, following a 3.07% decline in the past 24 hours. The daily trading volume is down by 53.25% and valued at $31.15 billion.
Following recent price falls, Ethereum also presents a negative performance on larger charts, with losses of 14.74% and 1.05% in the past seven and thirty days, respectively. However, the asset’s price remains far above its initial price point ($2,397) at the start of the post-US elections price rally, indicating that long-term sentiment remains positive.
With a market cap of $401 billion, Ethereum continues to rank as the second-largest cryptocurrency and largest altcoin in the digital asset market.
Conclusion
In conclusion, despite recent price corrections, Ethereum’s long-term prospects remain positive, driven by the rapid increase in HODL wallets’ holdings and bullish expectations of the DeFi industry. While macroeconomic factors may influence the short-term price movement, the asset’s fundamental strength and long-term sentiment remain strong.
FAQs
Q: What is the significance of Accumulation Addresses in Ethereum?
A: Accumulation Addresses are wallets that hold Ethereum but rarely move or sell their holdings. They are considered a measure of long-term investment and confidence.
Q: Why are these HODL wallets increasing their holdings?
A: Investors’ bullish expectations of the incoming Donald Trump administration in the US and more favorable regulations on the DeFi industry are driving the rapid increase in these Ethereum HODL wallets’ holdings.
Q: How does the price of Ethereum relate to the Accumulation Addresses?
A: The price of Ethereum has never slipped below the realized price of the Accumulation Addresses. Therefore, a continuous purchase by these wallets provides a high potential for a long-term price gain.
Q: What is the current market capitalization of Ethereum?
A: The current market capitalization of Ethereum is $401 billion, making it the second-largest cryptocurrency and largest altcoin in the digital asset market.
