On December 22, 2024, Ethereum (ETH) faced a significant price correction of over 19.5%, finding support at a local bottom of $3,100. In the last two days, the altcoin has shown slight resilience, rising by over 5% to trade at $3,352, despite a 3.07% decline in the past 24 hours. The daily trading volume has decreased by 53.25%, now valued at $31.15 billion.
In a recent analysis, CryptoQuant's MAC_D highlighted a surge in Ethereum Accumulation Addresses, which increased by 60% from August to December, raising their share of ETH supply from 10% to 16%, or 19.4 million ETH of 120 million ETH. These wallets, characterized by their low transaction frequency, indicate long-term investment confidence.
MAC_D noted that this accumulation trend is unprecedented in previous bull cycles and is driven by bullish expectations regarding favorable regulations under the incoming Donald Trump administration. Despite the current price movement, these long-holding wallets are likely to continue increasing their holdings in anticipation of future price growth.
It's important to note that Ethereum's price has never fallen below the realized price of these Accumulation Addresses, suggesting a strong potential for long-term gains. However, macroeconomic factors are expected to influence ETH's price in the short term, particularly following recent price drops attributed to potential interest rate cuts in 2025.
Currently, Ethereum holds a market cap of $401 billion, maintaining its position as the second-largest cryptocurrency.