The Ethereum ecosystem is witnessing a remarkable trend of accumulation, according to recent data from CryptoQuant. As of October 18, the total amount of Ethereum (ETH) held in accumulation addresses has surged to over 19 million, nearly doubling from the 11.5 million recorded in January 2024. This significant increase in holding behavior suggests a growing confidence in Ethereum’s long-term prospects, with at least one analyst projecting that the accumulation figure could surpass 20 million ETH by year’s end.
The dramatic rise in Ethereum accumulation is largely attributed to the approval of spot Ethereum exchange-traded funds (ETFs) in early 2024. This regulatory milestone has ushered in a new era for Ethereum, boosting investor confidence and facilitating mainstream adoption. The approval has opened doors for both institutional and individual investors, expanding Ethereum’s reach across the financial landscape. Analysts predict that by the end of 2024, the value of ETH in accumulation addresses could rival that of the world’s largest companies, potentially reaching $80 billion with Ethereum priced around $4,000.
Further underscoring the positive sentiment surrounding Ethereum, data from IntoTheBlock reveals that 71% of Ethereum holders are currently in profit. This statistic is complemented by the fact that over 74% of holders have maintained their positions for more than a year, indicating a strong belief in Ethereum’s long-term value proposition. The composition of Ethereum holders shows a clear preference for long-term investment strategies, with only 3% of holders having acquired their ETH within the past month.
The recent price performance of Ethereum aligns with these bullish indicators. With a 2% increase in the last 24 hours and a more than 10% surge over the past week, Ethereum has reclaimed the $2,700 level. This price action, coupled with the significant increase in accumulation addresses and the high percentage of profitable holders, paints a picture of growing strength and stability in the Ethereum ecosystem. As the cryptocurrency continues to evolve and attract more institutional interest, the trend of accumulation and long-term holding appears poised to continue.
