Amidst the price collapse of the mainstream crypto market over the past week, Ethereum (ETH) has recorded a price correction of more than 19.5% to find support in the area below $3,100. Since then, the prominent altcoin has shown only minor resilience rising more than 5% in the past two days. However, recent data on wallet activity provides a major reason to be bullish on Ethereum’s long-term future.
Ethereum HODL Talks Supply Increases 16%
In a recent QuickTake post, CryptoQuant analyst MAC_D shared some great insights into the Ethereum market.
A crypto market expert reports that the balance of Ethereum Accumulation Addresses increased by a remarkable 60% from August to December. During this period, these HODL funds increased their share of ETH supply from 10% to 16% i.e. 19.4 million ETH of 120 million ETH.
To explain, Fundraising Addresses are wallets that own Ethereum but rarely transfer or sell their assets. They are considered a measure of long-term investment and certainty.
According to MAC_D, the rapid expansion of these Ethereum HODL wallets is a new development not present in previous bull cycles. The analyst said that this level of accumulation was caused by what investors expect from the incoming administration of Donald Trump in the US.
These expectations include favorable regulations for the DeFi industry which represents a large sector of the Ethereum ecosystem. Therefore, regardless of Ethereum’s current price movements, these long-term funds may continue to increase their holdings in anticipation of future price growth.
Additionally, MAC_D emphasizes the importance of these Accumulation addresses by saying that the price of Ethereum has never fallen below their leased value. Therefore, continuous buying through these funds offers high potential for long-term price gains.
What’s Next for ETH?
Regarding Ethereum’s immediate movement, MAC_D warns that macroeconomic factors will likely have a strong impact on ETH’s price in the short term as shown by the recent price crash caused by the possible rate cut in 2025.
At the time of writing, the altcoin is trading at $3,352 following a 3.07% decline in the last 24 hours. Correspondingly, the daily trading volume of ETH decreased by 53.25% and has a value of 31.15 billion dollars.
After the recent price drop, Ethereum is again showing a negative performance on the main charts with a loss of 14.74% and 1.05% in the last seven and thirty days, respectively. Positively, the stock price remains well above its initial price ($2,397) at the start of the post-US election price rally, indicating that the long-term sentiment remains positive.
With a market cap of $401 billion, Ethereum continues to be ranked as the second largest cryptocurrency and the largest altcoin in the digital asset market.
