ETHEREUM (ETH) seems to have extended the recession period, as it was traded at $ 1770 at the time of writing this report. The assets decreased by 3 % during the past week and 1.6 % during the past 24 hours, and continued their broader corrective direction after reaching a higher session of $ 4,107 in December 2024.
Although the price movement was limited, the data on the series indicates that some basic transformations can affect market behavior in the short term.
Ethereum sees diving in the size of the stain
Darkfost analyst I mentioned The size of the Ethereum spot is witnessing a steady decrease. His analysis focuses on the bubble scheme, which imagines two dimensions: the size of each bubble represents a spot size, and its color indicates the rate of change.
According to the data, the bubbles are gradually smaller and lighter, indicating that fewer deals are made and that the rate of decline in size slows down.
Although a decrease in stain may be traditionally seen as a sign of a decrease in the investor’s interest or poor momentum, Darkfost explains it differently in the context of the market correction.
It suggests that the decrease in the size of the stain during the declining direction can be a stability force, which may reduce the possibility of severe fluctuation in large sale orders.
The low volume during the corrective stage may mean that the sellers exhaust their positions or move aside, creating conditions for unifying prices. This can reduce the severe pressure intensity and may pave the way for the market structure more balanced in the short term.
However, Darkfost was cautious in its interpretation, noting that the volume of cooling does not necessarily mean that the market has started. Instead, it can simply be determined by a temporary stop in fluctuation before the next step.
Long -term holders increase exposure despite the unrealized losses
At the same time, in separate to updateCryptoquant carmelo alemán explore the long -term ETHEREUM holder behavior and revealed that many ETH investors are still accumulating, even while sitting in unrealized losses.
The accumulation addresses, which are defined as conservatives are constantly receiving ETH without a large sale, are generally strong hands with longer investment prospects.
According to Amanan, March 10 represented a pivotal moment when the average price of accumulation has decreased less than the price of the ETH market, which prompted this portfolio to negative lands.
Nevertheless, the data shows that the accumulated addresses increased their balances by more than 22 % between March and early May, as it grows from 15.5 million souls to 19 million ETH.
This behavior reflects a strong condemnation and indicates that long -term holders believe that Ethereum is less than its current value. Historically, this accumulation during the decline period has preceded the progressive price movements, as the decrease in the supply in the market provides favorable conditions for gathering when the demand is returned.
A distinctive image created with Dall-E, the tradingView chart
The post Ethereum Spot Volume Declines While Long-Term Holders Continue Accumulating first appeared on Investorempires.com.
