According to an analysis by analytics firm CryptoQuant, the total amount of Ethereum (ETH) in accumulator wallets has increased to over 19 million.

Ethereum accumulation continues to grow

Analysis provided by CryptoQuant verified analyst Burak Kesmeci, indicates that over 19 million ETH is currently held in so-called “accumulation addresses”. In January 2024, there were approximately 11.5 million ETH at these addresses.

Quick escalate in ETH held by accumulation addresses suggests that sophisticated investors can expect growth in the digital asset market towards the end of the year.

Kesmeci emphasized that the amount of ETH stored at these addresses has almost doubled and may exceed 20 million ETH by the end of the year. There are several factors contributing to this high level of ETH accumulation.

First, the approval earlier this year of Ethereum-based ETFs by the U.S. Securities and Exchange Commission (SEC) provided much-needed regulatory clarity and approval for the second-largest cryptocurrency by market capitalization. The analyst explains:

Regulation has increased trust, making Ethereum mainstream. It is no longer available only to technology enthusiasts – institutions and individuals see it as a key element of the financial future. I expect there will be over 20 million ETH in these addresses by the end of the year. With an Ethereum price of around $4,000, the total value will exceed $80 billion, making these accumulation addresses as valuable as some of the largest companies in the world.

As of October 18, 2024, US-domiciled ETH spot ETFs to hold total net assets of $7.35 billion, representing almost 2.3% of Ethereum’s market capitalization. Last week, spot ETH ETFs attracted $78.9 million in net inflows, following two consecutive weeks of net outflows.

70% of ETH holders in profit

Data from IntoTheBlock shows that 70% of ETH holders make profits, 28% suffer losses, and 2% break even.

Moreover, 74% of current ETH holders have held the digital asset for over a year, while 23% have held it for over a month but less than a year. These factors indicate that investors do not want to part with their ETH holdings any time soon.

Most profitable holders could lead to increased buying pressure, potentially causing ETH prices to rise. However, multiple holders taking profits can also result in selling pressure, creating volatility.

The case for ETH’s increased volatility is strengthened by the recent surge in prices escalate in open interest for the digital asset. Some cryptocurrency analysts believe ETH will retest some of its key resistance levels before moving higher.

For example, most recently cryptocurrency analyst Carl Runefelt expressed his opinion that if ETH breaks the resistance level at $2,640, it could trigger a significant price escalate. At press time, ETH is trading at $2,663, down 2.4% in the last 24 hours.

Featured image from Unsplash, chart from Tradingview.com