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Why Ethereum’s road back to $3.7K depends on THIS accumulation metric
Ethereum’s recent market correction has left many wondering whether the altcoin can rebound and make a run for its previous all-time high of $4,109. As the cryptocurrency continues to oscillate between price surges and sharp declines, one key metric stands out as being crucial to determining ETH’s path forward: accumulation.
According to CryptoQuant data, Ethereum accumulating address holdings have surged significantly since August 2024, with a 60% increase in growth rate from just 10% in August to an unprecedented 16% by December. This monumental upswing has been fueled by the increasing demand for ETH as investors continue to buy and hold the cryptocurrency.
Notably, this accumulation metric has outpaced previous cycles, indicating that institutional investors are still heavily invested in the altcoin despite its recent price correction. As a result, it is essential to monitor this particular metric closely, as it will be instrumental in determining Ethereum’s potential recovery trajectory.
The data suggests that investors’ intentions are not aligned with the current market sentiment, which could lead to an extended period of sideways trading or even a significant reversal. The increasing buying pressure witnessed throughout this accumulating period has contributed significantly to the cryptocurrency’s rise from $2,116 to its recent high of $4,109. With Ethereum currently trading at $3,504 following a 24-hour surge of over 5%, investors are optimistic about the altcoin’s long-term potential.
As the market continues to evolve and navigate through current uncertainty, this accumulation metric will play an essential role in charting ETH’s path forward.
Source: ambcrypto.com
