Ethereum Accumulation Wallets Surge 33%...Is a $3,000 Price Surge Imminent?

▲ Ethereum (ETH)

Ethereum (ETH) has laid the groundwork for reclaiming the $3,000 mark, driven by aggressive accumulation by long-term investors.

On April 17 (local time), Cointelegraph, a virtual asset media outlet, reported that the balance of Ethereum accumulation-only wallets surged by 33% compared to the beginning of this year, reaching an all-time high. The balance of wallets that hold Ethereum without ever transferring it externally increased from 20.1 million ETH on January 1 to 26.55 million ETH recently. Despite price declines, long-term investors are showing strong confidence by expanding their Ethereum holdings by more than 6.45 million ETH.

Network activity indicators are also signaling a bottoming out. In February, the number of daily active addresses surpassed 1.1 million, reaching its highest level since late 2022. The profitability of whale investors is also clearly improving. CryptoQuant analyst CW8900 analyzed that large whale wallets holding over 100,000 ETH have re-entered the unrealized profit zone with the recent price rebound. Past cases show that strong price increases followed within months after a surge in fund inflows to accumulation addresses.

Scarcity on the supply side is also strengthening. The current amount of staked Ethereum is 37.85 million ETH, surpassing 30% of the total supply, setting a new all-time high. Conversely, Ethereum balances on exchanges have fallen to 3.46 million ETH, maintaining a multi-year low. As a supply shock phenomenon, where the circulating supply rapidly decreases, becomes visible, the technical foundation supporting price increases has been solidified.

The easing of geopolitical risks served as a catalyst for the recovery of investor sentiment. With news of a ceasefire agreement between the US and Iran and the reopening of the Strait of Hormuz, funds rapidly flowed into Ethereum, a risk asset. Ethereum has demonstrated strong resilience, rebounding by approximately 20% from its low of $1,940 recorded on March 29. Market analysts predict that having broken through the $2,400 resistance level, the rally will continue through $2,800 to $3,000.

Ethereum is currently forming a round bottom pattern, attempting a full trend reversal. It is demonstrating strong downside rigidity at the intersection of the 20-day exponential moving average and key support levels. Investors anticipate that continuous fund inflows to accumulation addresses and a decrease in exchange supply will lead to a re-evaluation of Ethereum's value.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*