- Long-term accumulation Ethereum addresses now hold over 19 million ETH, nearly doubling since January 2024.
- With nearly 29% of ETH’s total supply deployed, reduced market liquidity could support future price stability.
Ethereum [ETH] experienced a surge in long-term accumulation, with over 19 million ETH held at addresses on October 18.
This marks a significant increase from the 11.5 million ETH at the start of the year, reflecting growing confidence among investors about Ethereum’s long-term prospects.
Ethereum accumulation is rising
Data from CryptoQuant revealed a substantial increase in Ethereum in accumulation addresses. In January 2024, these addresses held 11.5 million ETH, and by October this figure had almost doubled.
Experts suggest that by the end of the year the amount held at these addresses could exceed 20 million ETH, continuing this upward trend.
Source: CryptoQuant
This increase in long-term positions indicates that large investors and ETH supporters are building their positions with the expectation of future growth.
The adoption of Spot ETFs in early 2024 has also contributed to this accumulation by drawing more mainstream attention to ETH. The rise in the number of ETH strikes is another driving force behind the increased accumulation.
Ethereum has deployed almost 30% of the supply
As accumulation grows, staking has also become a key factor in Ethereum market dynamics. Data from Dune Analytics shows that at the time of writing, 34,600,896 ETH had been staked, representing almost 29% of the total supply of ETH.
Source: DuneAnalytics
With a significant portion of ETH locked up in staking contracts, the overall market may see less pressure on the sell side.
This could provide support to Ethereum’s price in the near future as there is less ETH available for trading, which could contribute to price stability or even further price appreciation.
Ethereum maintains a positive trend
At the time of writing, Ethereum was trading at $2,649, slightly above the key support levels.
The 50-day moving average of $2,476 has provided strong support, while the 200-day moving average of $3,022 has served as critical resistance.
A break above this resistance level will be essential for ETH to sustain a rally in the longer term.
Source: TradingView
The Relative Strength Index (RSI) stands at 61.61, indicating moderate bullish momentum without entering overbought territory.
Read Ethereum’s [ETH] Price forecast 2024-25
Meanwhile, the Chaikin Money Flow (CMF) was slightly negative at -0.07, reflecting limited buying pressure, but not enough to signal a bearish trend reversal.
While Ethereum maintains a positive outlook, surpassing the USD 3,022 resistance is crucial for a stronger upside trajectory. If market volatility arises, the 50-day moving average of $2,476 could act as crucial support.