Ethereum Accumulation Surges: Holders Lower Cost Basis Ahead of Potential Rally

Investors are quickly losing interest in selling Ethereum, as new data from CryptoQuant reveals a strong preference for accumulation among long-term ETH holders.

According to a recent update by CryptoQuant, a leading on-chain analytics firm, a small group of accumulating addresses, known for their steady token inflows and lack of selling activity, have been persistently accumulating Ethereum.

Over the past 10 months, these accumulating addresses have managed to lower their average cost basis (ACB) by a significant amount, showcasing an unwavering commitment to their investment strategy despite market fluctuations.

As of the latest data, around 19 million ETH is now held by these accumulating addresses, a portion of the total ETH supply.

Furthermore, the visualization of the Ethereum balance on-exchange in the fourth chart highlights the minimal changes in exchange supply, even as these accumulating addresses rapidly increase their ETH holdings.

This behavior suggests a high level of confidence and a clear anticipation of short-term price appreciation.

“The behavior of accumulating addresses showcases structural conviction & clear expectations of short-term appreciation,” CryptoQuant stated.

A deep interest in cryptocurrencies, blockchain technology, and the metaverse. Keen observer of market trends and a dedicated writer with a passion for delivering engaging and informative content.output: Investors are quickly losing interest in selling Ethereum, according to new data from on-chain analytics firm CryptoQuant.

According to a recent analysis by CryptoQuant, a small group of accumulating addresses, recognized by their consistent token inflows and lack of selling activity, have been diligently accumulating Ethereum over the past 10 months.

In the process, they have managed to decrease their average cost basis (ACB) significantly, even as the price of ETH has fluctuated considerably. This behavior is a testament to their long-term vision and resilience in the face of market volatility.

As of the latest data, these accumulating addresses collectively hold approximately 19 million ETH, showcasing the magnitude of their investment and the strong anticipation of future gains.

Moreover, the visualization of the Ethereum balance on exchanges in the fourth chart highlights the minimal changes in exchange supply, even as these accumulating addresses rapidly increase their ETH holdings. This observation suggests that the observed price movements are primarily driven by varying levels of demand for ETH.

In summary, the actions of accumulating addresses, characterized by a pattern of constant inflows and no selling activity, indicate a rising tide of investor confidence.

This behavior is often associated with “smart money,” which tends to move in anticipation of broader market shifts. By lowering their average acquisition cost, these investors are positioning themselves to maximize returns if ETH experiences an increase in the near term.

With over 19 million ETH now concentrated in the hands of accumulating addresses, the overall supply on exchanges remains relatively low, potentially setting the stage for further price increases as demand rises.