Amid a general crypto market price fall in the past week, Ethereum (ETH) recorded a price correction of over 19.5% finding support at a local bottom of $3,100. Since then, the prominent altcoin has only shown slight resilience rising by over 5% in the past two days. However, recent data on wallet activity provides much cause to be bullish on Ethereum’s long-term future.
Ethereum HODL Addresses Increase Supply Dominance To 16%
In a recent QuickTake post, CryptoQuant analyst MAC_D shared some positive insights on the Ethereum market.
The crypto market expert reports that the balance of Ethereum Accumulation Addresses has surged by a remarkable 60% from August to December. During this time, these HODL wallets have boosted their portion of ETH supply from 10% to 16% i.e. 19.4 million ETH of 120 million ETH.
To explain, the Accumulation Addresses are wallets that hold Ethereum but rarely move or sell their holdings. They are considered a measure of long-term investment and confidence.
According to MAC_D, the rapid increase in these Ethereum HODL wallets’ holdings is a new development absent from previous bull cycles. The analyst attributed this massive accumulation rate to investors’ bullish expectations of the incoming Donald ***** administration in the US.
These expectations include more favorable regulations on the DeFi industry which represents a major sector of the Ethereum ecosystem. Therefore, regardless of Ethereum’s current price movement, these long-holding wallets are likely to keep increasing their holdings in anticipation of future price growth.
In addition, MAC_D emphasizes the importance of these Accumulation Addresses in that the price of Ethereum has never slipped below their realized price. Therefore, a continuous purchase by these wallets provides a high potential for a long-term price gain.
What’s Next For ETH?
In regards to Ethereum’s immediate movement, MAC_D warns that macroeconomic factors are likely to exert a stronger influence on ETH’s price in the short-term as illustrated by the recent price crash induced by potential reduced interest rate cuts in 2025.
At the time of writing, the altcoin trades at $3,352 following a 3.07% decline in the past 24 hours. In tandem, ETH’s daily trading volume is down by 53.25% and valued at $31.15 billion.
Following recent price falls, Ethereum also presents a negative performance on larger charts with losses of 14.74% and 1.05% in the past seven and thirty days, respectively. On a positive note, the asset’s price remains far above its initial price point ($2,397) at the start of the post-US elections price rally, indicating that long-term sentiment remains positive.
With a market cap of $401 billion, Ethereum continues to rank as the second-largest cryptocurrency and largest altcoin in the digital asset market.