Amid the general decline in cryptocurrency market prices last week, Ethereum (ETH) registered a price correction of over 19.5% and found support at a local low at $3,100. Since then, the prominent altcoin has only shown slight resilience as it has risen over 5% in the past two days. However, recent data on wallet activity provides great reason to be optimistic about Ethereum’s long-term future.
Ethereum HODL Addresses Increase Supply Dominance to 16%
Recently Quick postCryptoQuant analyst MAC_D shared some positive thoughts about the Ethereum market.
A cryptocurrency market expert reported that the balance of Ethereum accumulator addresses increased by a remarkable 60% from August to December. During this time, these HODL wallets boosted 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 hold Ethereum but rarely transfer or sell their holdings. It is considered a measure of long-term investment and confidence.
According to MAC_D, the rapid increase in Ethereum HODL wallet holdings is a new development absent from previous bull cycles. The analyst attributed this massive accumulation rate to investors’ bullish expectations for the upcoming Donald Trump administration in the United States.
These forecasts include more favorable regulations for the decentralized finance (DeFi) industry, which represents a key sector of the Ethereum ecosystem. Therefore, regardless of Ethereum’s current price movement, these long-term portfolios will likely continue to increase their holdings in anticipation of future price growth.
Additionally, MAC_D underscores the importance of these accumulation addresses as the price of Ethereum has never fallen below its realized price. Therefore, continuous purchasing of these portfolios offers a high potential for long-term price gains.
What’s next for ETH?
Regarding Ethereum’s spot movement, MAC_D warns that macroeconomic factors are likely to have a stronger impact on ETH’s price in the short term as evidenced by the recent price collapse caused by potential interest rate cuts in 2025.
At the time of writing, the altcoin is trading at $3,352 after a 3.07% decline over the past 24 hours. In tandem, ETH’s daily trading volume fell by 53.25% and was valued at $31.15 billion.
After the recent price decline, Ethereum also gave a negative performance on the larger charts with losses of 14.74% and 1.05% in the past 37 days respectively. On the positive side, the asset’s price is still well above its initial price point ($2,397) at the start of the post-US election rally, suggesting that long-term sentiment remains positive.
With a market cap of $401 billion, Ethereum continues to rank as the second largest cryptocurrency and the largest altcoin in the digital asset market.