Amid a general crypto market price fall in the past week, Ethereum (ETH) experienced a price correction of over 19.5%, finding support at a local bottom of $3,100. Despite this drop, the prominent altcoin has shown some resilience, rising by over 5% in the past two days. However, recent data on wallet activity suggests that there is reason to be bullish on Ethereum’s long-term future.
According to a recent QuickTake post by CryptoQuant analyst MAC_D, the balance of Ethereum Accumulation Addresses has increased by 60% from August to December. These HODL wallets now hold 16% of the total ETH supply, equating to 19.4 million ETH out of 120 million ETH. Accumulation Addresses are wallets that hold Ethereum but rarely move or sell their holdings, indicating long-term investment and confidence in the asset. MAC_D attributes this surge in accumulation to investors’ bullish expectations of the incoming US administration, particularly in the DeFi sector, which is a significant part of the Ethereum ecosystem. As a result, these HODL wallets are likely to continue accumulating ETH in anticipation of future price growth.
MAC_D highlights the importance of these Accumulation Addresses, noting that the price of Ethereum has never fallen below their realized price. This continuous accumulation by long-term holders suggests a strong potential for long-term price appreciation. In terms of immediate movement, MAC_D warns that macroeconomic factors could influence ETH’s price in the short term, such as the recent price crash triggered by potential reduced interest rate cuts in 2025. At the time of writing, Ethereum is trading at $3,352, showing a 3.07% decline in the past 24 hours.
Despite recent price declines, Ethereum remains significantly above its initial price point at the start of the post-US elections price rally, indicating positive long-term sentiment. Ethereum’s market cap of $401 billion solidifies its position as the second-largest cryptocurrency and the largest altcoin in the digital asset market. While short-term price movements may be influenced by external factors, the data on wallet activity suggests that Ethereum’s long-term outlook remains positive, with HODL wallets continuing to accumulate ETH in anticipation of future price appreciation.
