Among a general crypto market price drop In the past week, Ethereum (ETH) recorded a price correction of more than 19.5% finding support at a local base of $3,100. Since then, the prominent altcoin has only shown some resilience rising more than 5% in the past two days. However, recent data on wallet activity gives plenty of reason to be bullish on Ethereum's long-term future.
Ethereum HODL addresses increase supply lead to 16%
In recent times Post QuickTakeCryptoQuant analyst MAC_D shared some positive thoughts on the Ethereum market.
The crypto market expert reports that the balance of Ethereum Accumulation Addresses has increased by a staggering 60% from August to December. During this time, these HODL wallets have increased their share of ETH supply from 10% to 16% ie 19.4 million ETH of 120 million ETH.
To explain, Accumulation Addresses are wallets that hold Ethereum but rarely transfer or sell their holdings. They are considered a measure of long-term investment and confidence.
According to MAC_D, the rapid increase in these Ethereum HODL wallet holdings is a new development absent from previous bull cycles. The analyst attributed this massive rally to investor expectations from the incoming Donald Trump administration in the US.
These expectations include more favorable rules on the Business Defi which represents a key sector of the Ethereum ecosystem. Therefore, regardless of Ethereum's current price movement, these long-term wallets are likely to continue increasing their holdings in anticipation of future price growth.
In addition, MAC_D emphasizes the importance of these collection addresses because the price of Ethereum has never decreased below the realized price. Therefore, continuous purchases with these wallets provide a high potential for long-term price gain.
What's next for ETH?
Regarding the immediate movement of Ethereum, MAC_D warns that macroeconomic factors are likely to have a stronger impact on the price of ETH in the short term as shown by the recent price crash caused by cuts lower rate in 2025.
At the time of writing, the altcoin is trading at $3,352 after a decline of 3.07% in the last 24 hours. Together, ETH's daily trading volume is down 53.25% and valued at $31.15 billion.
After the recent price drop, Ethereum is also showing a negative performance on larger charts with a loss of 14.74% and 1.05% in the seven and thirty days, respectively. On a positive note, the asset price remains well above its initial price point ($2,397) at the start of the post-US election price rally, indicating that long-term sentiment remains positive.
With a market cap of $401 billion, Ethereum still ranks as the second largest cryptocurrency and the largest altcoin in the digital asset market.
