{"id":64386,"date":"2025-05-07T05:30:20","date_gmt":"2025-05-07T05:30:20","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=64386"},"modified":"2025-05-07T05:30:20","modified_gmt":"2025-05-07T05:30:20","slug":"ethereum-spot-volume-declines-while-long-term-holders-continue-accumulating","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=64386","title":{"rendered":"Ethereum Spot Volume Declines While Long-Term Holders Continue Accumulating"},"content":{"rendered":"

Ethereum (ETH) seems to have extended its period of price stagnation, trading at $1,770 at the time of writing. The asset has dropped by 3% over the past week and 1.6% in the past 24 hours, continuing its broader corrective trend after reaching a cycle high<\/a> of $4,107 in December 2024.<\/p>\n

Although price movement has been limited, on-chain data suggests that certain underlying shifts could influence market behavior in the near term.<\/p>\n

Ethereum Sees Plunge In Spot Volume<\/h2>\n

CryptoQuant analyst Darkfost has reported<\/a> that Ethereum\u2019s spot volume is experiencing a consistent decline. His analysis focuses on a bubble chart that visualizes two dimensions: the size of each bubble represents spot volume, and its color indicates the volume change rate.<\/p>\n

According to the data, the bubbles have become progressively smaller and lighter in color, indicating that fewer trades are being conducted and that the pace of decline<\/a> in volume is slowing.<\/p>\n

While declining spot volume may traditionally be viewed as a sign of reduced investor interest or weak momentum, Darkfost interprets it differently in the context of a market correction.<\/p>\n

He suggests that a decline in spot volume during a downtrend can act as a stabilizing force, potentially reducing the likelihood of sharp volatility spikes caused by large sell orders.<\/p>\n

Lower volume during a corrective phase could mean that sellers are exhausting their positions or stepping aside, creating conditions for price consolidation<\/a>. This can ease the intensity of downward pressure and potentially pave the way for a more balanced market structure in the short term.<\/p>\n

However, Darkfost was cautious in his interpretation, noting that cooling volume doesn\u2019t necessarily mean the market has bottomed out. Instead, it could simply mark a temporary pause in volatility before the next move.<\/p>\n

Long-Term Holders Increase Exposure Despite Unrealized Losses<\/h2>\n

Meanwhile, in a separate update<\/a>, CryptoQuant analyst Carmelo Alem\u00e1n explored Ethereum\u2019s long-term holder behavior and revealed that many ETH investors continue to accumulate, even while sitting in unrealized losses.<\/p>\n

Accumulation addresses, defined as wallets that consistently receive ETH without significant selling, are generally seen as strong hands with longer investment horizons<\/a>.<\/p>\n

According to Alem\u00e1n, March 10 marked a pivotal moment when the average realized price of accumulation addresses fell below ETH\u2019s market price, pushing these wallets into negative territory.<\/p>\n

Despite this, the data shows that accumulating addresses have increased their balances by over 22% between March and early May, growing from 15.5 million ETH to 19 million ETH.<\/p>\n

This behavior reflects strong conviction and suggests that long-term holders believe Ethereum is undervalued at current prices<\/a>. Historically, such accumulation during downturns has preceded upward price movements, as reduced supply on the market creates favorable conditions for a rally when demand returns.<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":"

Ethereum (ETH) seems to have extended its period of price stagnation, trading at $1,770 at the time of writing. The asset has dropped by 3% over the past week and 1.6% in the past 24 hours, continuing its broader corrective trend after reaching a cycle high of $4,107 in December 2024. Although price movement has […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-64386","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/64386"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64386"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/64386\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}