A Clear Shift in Ethereum (ETH) On-Chain Behavior Has Emerged

Over the past two months, a clear shift in Ethereum (ETH) on-chain behavior has emerged.

The cryptocurrency market is in a state of flux, with Bitcoin and Ethereum remaining the dominant players despite recent price movements. As the dust settles on May 3, the attention of investors is turning toward the next stage of this journey.

Key Takeaways:

* Long-term Ethereum (ETH) holders have been steadily increasing their positions despite the recent weakness in price, adding 22.54% more to their holdings over the past two months.

* The average entry price of many of these wallets was at $2,026, and at the beginning of March, the realized price of ETH was $1,866.70.

* As of May 3, the price reached $1,980, suggesting that these wallets are continuing to accumulate at a lower cost basis.

ETH Accumulation Unfazed by Price Correction

The price of Ethereum has been coming under pressure since it hit a peak of $4,107 in December 2024. Since then, ETH has trended downward month after month with the correction that followed. However, the rise in holdings from long-term addresses signals that they are not acting based on short-term price action.

These coins are used in these wallets and are kept by them for more than 155 days. They have consistently behaved: added more ETH, and they have not sold.

“Behavior reflects structural conviction & clear expectations of short-term appreciation,” said @oro_crypto, referencing the data tracked in CryptoQuant’s accumulation metrics.

Ethereum Price Remains in Tight Range

As of 08:38 ET (12:38 GMT), Ethereum was trading in a narrow zone between $1,783 and $1,831. The Bollinger Bands were tightening, and the price was hovering just below a resistance level at $1,941. The 20-day moving average, sitting at $1,739, continued to provide support.

Market momentum remained neutral. The RSI was at 54.63, just under its trend line of 55.50 at press time. These numbers showed that ETH was neither overbought nor oversold. At the same time, volume has grown since mid-April, meaning that larger moves are on the way as attention increases.

Derivatives Activity Picks Up

Derivatives activity around Ethereum also picked up. Total trading volume rose 26.51% to $46.3 billion, while open interest saw a smaller rise of 1.13%, now at $21.9 billion. In the options market, volume jumped nearly 75% to $357.69 million, showing that traders are preparing for price volatility.

Shorts were outnumbered by long positions on major exchanges. When writing, the long-to-short ratio on Binance was 2.24, and on OKX, it was 2.04.

Additionally, the ratio was higher among Binance’s top trader accounts at 2.76. This implied that most traders were still betting on what could happen, that of a rise as opposed to a decline.

Liquidations over the last 24 hours amounted to $40.67 million, with $8.10 million off that as a short position. Though long liquidations were higher in general, losing short liquidations in multiple time frames suggested upward pressure.

Chart watchers have noticed a tightening pattern in price action. According to analyst called Thecryptomist, Ethereum was forming an ascending triangle, and price movement inside a smaller wedge could soon trigger a breakout.

“$1950 remains programmed next,” Thecryptomist noted, identifying it as a key level to watch.

Attention Turns to Ethereum Upgrade

The Ethereum network is set for an upgrade on May 7 called Pectra. There is one notable change, and it is that the validator staking limit is going to be raised from 32 ETH to 2,048 ETH. In addition, it will increase the number of data blobs per block, which may improve throughput and efficiency.

There is building investor attention ahead of the upgrade. “Buying $ETH now is like buying BTC at $4,000,” said analyst @TedPillows, who pointed to Ethereum’s growing use in real-world asset tokenization and its rising institutional interest.

Consequently, the increase in long-term accumulation, derivatives activity, and upcoming protocol changes all suggest that Ethereum is approaching a crucial period.