Following the overall price decline in the cryptocurrency market last week, Ethereum (ETH) saw its price correct by over 19.5%, finding support at the local low of $3,100. Since then, the leading altcoin has shown only modest resistance with an enhance of over 5% in the last two days. However, recent data on wallet activity gives plenty of reasons to be hopeful about Ethereum’s long-term future.
Ethereum HODL addresses enhance supply dominance to 16%
In recent QuickTake postCryptoQuant analyst MAC_D shared some positive observations about the Ethereum market.
A cryptocurrency market expert reports that the balance of Ethereum accumulation addresses increased by a remarkable 60% from August to December. During this time, HODL wallets increased their share of the ETH supply from 10% to 16%, i.e. 19.4 million ETH from 120 million ETH.
To clarify, accumulator addresses are wallets that store Ethereum but rarely move or sell their assets. They are considered a measure of long-term investment and confidence.
According to MAC_D, the rapid growth of Ethereum HODL wallet holdings is a modern phenomenon that has not been seen in previous bull cycles. The analyst attributed this huge rate of accumulation to rising investor expectations for the modern Donald Trump administration in the US.
These expectations include more favorable regulations for the DeFi industry, which is a core sector of the Ethereum ecosystem. Therefore, regardless of Ethereum’s current price movement, these long wallets will likely continue to enhance their holdings in anticipation of future price increases.
Furthermore, MAC_D highlights the importance of these accumulation addresses as Ethereum’s price has never dropped below the realized price. Therefore, continuous purchases using these wallets provide high potential for long-term price growth.
What’s next for ETH?
Regarding Ethereum’s immediate move, MAC_D warns that macroeconomic factors will likely have a stronger impact on the ETH price in the compact term, as illustrated by the recent price crash triggered by potential interest rate cuts in 2025.
At the time of writing, the altcoin is trading at $3,352 after falling 3.07% in the last 24 hours. In both cases, the daily ETH trading volume dropped by 53.25% and amounted to $31.15 billion.
Following the recent price declines, Ethereum is also showing negative performance on the larger charts, with losses of 14.74% and 1.05% over the last seven and thirty days, respectively. On the positive side, the asset price remains well above its initial price ($2,397) at the start of the post-US election price rally, indicating that long-term sentiment remains positive.
With a market capitalization of $401 billion, Ethereum still ranks as the second largest cryptocurrency and largest altcoin in the digital asset market.
