Ethereum (ETH) seems to have extended his price stagnation period and to act at $ 1,770 at the time of writing. The active fell by 3% in the past week and 1.6% in the last 24 hours, which continues its wider corrective trend after reaching a high of $ 4,107 in December 2024.
Although the price movement is limited, data on chains suggest that certain underlying shifts can influence market behavior in the short term.
Ethereum sees plot in spot volume
Cryptoquant Analyst Darkfost has reported The spot volume of Ethereum experiences a consistent decline. His analysis focuses on a calling chart that visualizes two dimensions: the size of each bell represents the spot volume and the color indicates the volume change speed.
According to the data, the bubbles have gradually become smaller and lighter in color, indicating that fewer transactions are being carried out and that the pace of the decrease in the volume slows down.
Although the decreasing spot volume can be traditionally seen as a sign of reduced investor’s interest or weak momentum, Darkfost interprets things differently in the context of a market correction.
He suggests that a decrease in the spot volume during a downtrend can act as a stabilizing force, which may reduce the risk of sharp volatility peaks caused by large sales orders.
Lower volume during a corrective phase can mean that sellers exhaust or step aside, which creates conditions for price consolidation. This can illuminate the intensity of downward pressure and possibly release the road for a more balanced market structure in the short term.
Darkfost, however, was careful in his interpretation, and noted that cooling volume does not necessarily mean that the market has been brought to the bottom. Instead, it can simply mark a temporary break in volatility before the next move.
Long-term holders increase exposure despite non-realized losses
Meanwhile in a separate updateCryptoquant analyst Carmelo Alemán investigated the behavior of the long term of Ethereum and revealed that many ETH investors continue to accumulate, even while they are in non-realized losses.
Accumulation addresses, defined as portfolios that consistently receive ETH without significant sale, are generally seen as strong hands with longer investment horizons.
According to Alemán, a crucial moment marked a crucial moment on 10 March when the average realized price of accumulation addresses fallen under the market price of ETH, which pushed this wallet to a negative area.
Nevertheless, the data shows that the accumulating addresses increased their balances by more than 22% between March and the beginning of May, and grows from 15.5 million ETH to 19 million ETH.
This behavior reflects a strong conviction and suggests that long -term holders believe that Ethereum is undervalued under current prices. Historically, such an accumulation preceded decline, since a reduced supply on the market creates favorable conditions for a rally when the demand returns.
Featured image made with Dall-e, graph of TradingView
