Ethereum (ETH) seems to have extended its period of price stagnation, trading at $ 1,770 at the time of the editorial staff. The asset fell 3% in last week and 1.6% in the last 24 hours, continuing its wider corrective trend after reaching a cycle of $ 4,107 in December 2024.
Although the price movement has been limited, the chain data suggests that certain underlying changes may influence market behavior in the short term.
Ethereum sees diving in punctual volume
Cryptocurrency analyst Darkfost reported that the punctual volume of Ethereum is experiencing a coherent drop. Its analysis focuses on a bubble graph which visualizes two dimensions: the size of each bubble represents the volume of punctual, and its color indicates the rate of change in volume.
According to data, the bubbles have gradually become smaller and lighter, which indicates that fewer trades are made and that the rate of decrease in volume slows down.
Although the drop in chest volume can traditionally be considered a sign of interest in reduced or low impulse investors, Darkfost interprets it differently in the context of market correction.
He suggests that a drop in punctual volume during a downward trend can act as a stabilization force, potentially reducing the probability of strong volatility points caused by large sales orders.
A lower volume during a corrective phase could mean that sellers exhaust their positions or move away, creating conditions for price consolidation. This can alleviate the intensity of downward pressure and potentially pave the way for a more balanced short -term market structure.
However, Darkfost was careful in its interpretation, noting that the cooling volume does not necessarily mean that the market has made a background. Instead, he could simply mark a temporary break in volatility before the next movement.
Long -term holders increase the exhibition despite the unrealized losses
Meanwhile, in a separate update, the cryptocurrency analyst, Carmelo Alemán, explored the behavior of long -term holders of Ethereum and revealed that many ETH investors continue to accumulate, even being seated in unrealized losses.
The accumulation addresses, defined as portfolios that systematically receive ETH without significant sale, are generally considered to be strong hands with longer investment horizons.
According to Alemán, March 10 marked a pivotal moment when the average price made of accumulation addresses fell below ETH market, pushing these portfolios in negative territory.
Despite this, the data show that the accumulation of addresses increased their balance by more than 22% between March and early May, going 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 at current prices. Historically, such accumulation during slowdowns preceded the upward price movements, because a reduction in supply on the market creates favorable conditions for a rally when demand returns.
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(Tagstotranslate) Altcoin
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