ETHEREUM (ETH) seems to have expanded the time of disruption of the price, trading at $ 1,770 at the time of writing. The owner dropped 3% in the last week and 1.6% in the past 24 hours, continuing its wider correction pace after reaching a round of $ 4,107 in December 2024.
Although price movement is limited, on-chain data suggests that some grounded transfers can influence market behavior in the near term.
Ethereum sees the plunge in the area volume
Cryptoquant Analyst Darkfost is reported The volume of the Ethereum area experiences a coincidence. His analysis focuses on a bubble chart that shows two dimensions: the size of each bubble represents the volume of the area, and its color indicates the rate of volume change.
According to the data, the bubbles become gradually smaller and lighter in color, indicating that fewer trades are being conducted and that the speed of decline in volume slows down.
While the decline of the area's volume may be traditionally viewed as a sign of reduced investor interest or weak momentum, it differs from the darkfost in the context of a market correction.
He suggests that a decline in the area volume during a downtrend can act as a stabilized force, which potentially reduce the likelihood of sharp volatility of spikes caused by large sales orders.
The lower volume during a corrective phase may mean that sellers are exhausted in their positions or steps, creating conditions for incorporating prices. This can alleviate the intensity of downward pressure and potentially make way for a more balanced market structure in the short term.
However, the darkfost was careful in its interpretation, noticing that the amount of cooling does not mean the market dropped. Instead, it can only be marked with a temporary pause in volatility before the next move.
Long -term holders increase exposure beyond the unlucky losses
Meanwhile, in a separate UpdateCryptoquant Analyst Carmelo Alemán explored the long-term behavior of the Ethereum holder and announced that many ethical investors were constantly accumulated, even sitting in the unconditional losses.
The accumulation addresses, defined as purses that continue to receive ETH without significant sale, generally seen as strong hands with longer affordable investments.
According to Alemán, March 10 was marked with an important moment when the average realized price of accumulation addresses fell under the price of the ETH market, pushing these wallets into negative territory.
Despite this, data shows that accumulated addresses increased their balances by more than 22% between March and early May, growing from 15.5 million ETHs to 19 million ETHs.
This behavior reflects strong faith and suggests that long-term holders believe that Ethereum is measured at current prices. Historically, such accumulation during the falls preceded price movements, as decreased supply in the market creates a desirable condition for a rally when demand returns.
Featured image created using Dall-E, chart from tradingview
