Ethereum (ETH) has experienced a steady rebound in recent days, driven by a more positive sentiment in the wider cryptocurrency market.
The second-largest cryptocurrency in the world is trading close to multi-month highs, but its journey to reclaim the $5,000 level may encounter obstacles due to lackluster investor accumulation.
Ethereum Accumulation Is Recovering
The Holder Accumulation Ratio for Ethereum currently stands at 30%, significantly below the 50% level that usually indicates robust accumulation behavior. A ratio exceeding this benchmark typically signals that long-term investors are actively purchasing ETH, reflecting optimism for ongoing growth.
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Historically, Ethereum’s accumulation ratio has shown fluctuations between 40% and 45% during stable price rises. The recent increase, although slight, suggests an improvement in sentiment.
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Ethereum’s “Age Consumed” metric has surged twice this month, indicating a significant uptick in long-term holder activity. This on-chain metric tracks when previously dormant coins begin to circulate again, often hinting that older holders are cashing out. Continual spikes may suggest that confidence among long-term investors is dwindling.
Regular selling from long-term holders frequently precedes short-term price corrections, as it introduces new supply into the market. If these spikes continue, Ethereum may encounter increased resistance as it attempts to reach new heights.
ETH Price Is Struggling To Rise
Currently priced at $4,147, Ethereum is trading just below the critical $4,222 resistance level. Surpassing this barrier could allow ETH to rise toward $4,500, attracting stronger interest from both institutional and retail investors.
If accumulation increases and confidence improves, Ethereum could head toward $4,956 — its previous all-time high — and maybe even reach $5,000. This would be a definitive indication of market recovery and renewed bullish energy.
However, should bearish sentiment increase or long-term holders continue to divest, Ethereum may fall below $4,000. A more significant correction could drive the price down to $3,872 or lower, undermining the bullish outlook and signaling renewed selling pressure in the market.
