BlockBeats reported on May 5, 2025, that CryptoQuant analysts observed Ethereum (ETH) accumulation addresses persistently increasing their holdings despite market downturns. Since ETH peaked at $4,107 on December 16, 2024, its price has undergone continuous correction. However, these accumulation addresses—typically long-term holders retaining ETH for over 155 days—kept acquiring more tokens.
Key Findings:
- Unrealized Losses: On March 10, accumulation addresses entered an unrealized loss zone when ETH dropped to $1,866.70, while their average holding price remained at $2,026.
- Steady Growth: Between March 10 and May 3, these addresses boosted their ETH holdings from 15.5356 million to 19.0378 million—a 22.54% increase.
- Market Confidence: This trend reflects strong investor confidence in Ethereum’s fundamentals and ecosystem resilience.
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Why This Matters
Accumulation addresses serve as a proxy for "smart money" in crypto markets. Their continued buying during price drops suggests:
- Long-term bullishness on ETH’s value proposition (e.g., DeFi, NFTs, layer-2 scaling).
- Strategic dollar-cost averaging to lower entry points.
- Contrarian positioning against short-term market sentiment.
FAQ Section
Q: What defines an ETH accumulation address?
A: These are addresses that consistently receive ETH without significant sales, maintaining or growing balances over time. They’re often held by long-term investors (>155 days).
Q: Why keep buying during unrealized losses?
A: Seasoned investors often view price dips as opportunities to accumulate assets with strong fundamentals at discounted rates.
Q: How does this behavior impact ETH’s price?
A: Sustained buying pressure from accumulation addresses can create support levels, potentially slowing further declines and accelerating recoveries.
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Market Implications
While retail investors may panic-sell during downturns, institutional and sophisticated players frequently use these periods to build positions. The 22.54% growth in ETH holdings by accumulation addresses signals:
- Reduced sell-side liquidity as more ETH gets locked in long-term wallets.
- Higher future price volatility if these holders eventually take profits.
Conclusion
Ethereum’s accumulation narrative underscores the divergence between short-term price action and long-term conviction. For investors, this highlights the importance of:
- Fundamental research beyond daily price movements.
- Disciplined accumulation strategies during market fear.
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