- Ethereum is seeing strategic accumulation from long-term holders, signaling growing confidence despite a cooling DeFi market.
- While price action remains fragile, Ethereum’s supply dynamics suggest that seasoned investors are positioning for a potential major move
Ethereum (ETH) is quietly undergoing a transformation beneath the surface, with strategic buyers taking advantage of current market conditions. Despite the overall slowdown in DeFi activity and muted market sentiment, Ethereum’s long-term investors are showing an increasingly confident outlook. As Ethereum hovers below key resistance levels, on-chain data reveals a rising wave of strategic accumulation that could signal bigger moves ahead.
Strategic Accumulation Gains Momentum
While market focus shifts to short-term price changes and DeFi’s slowdown, Ethereum’s supply dynamics show long-term holders steadily accumulating ETH since late March, with a strong RSI around 80, reflecting growing confidence despite market hesitation.
The contrast between conviction buyers and loss sellers further reinforces this trend. Panic selling peaked around mid-April but has since slowed down, with the RSI for these sellers dropping below 50, suggesting a shift away from fear-driven exits and toward a more strategic approach. This growing confidence among seasoned Ethereum holders hints that the next major price movement could be driven by this accumulated supply.
Ethereum DeFi Slowdown: A Temporary Setback?
Ethereum’s decentralized finance (DeFi) ecosystem is still feeling the effects of the broader market slowdown. Total value locked (TVL) in Ethereum-based decentralized exchanges (DEXs) has dropped nearly 90% from its all-time highs, while trading volumes have fallen by about 55%. With users shifting to other chains or off-chain solutions, it’s clear that Ethereum’s DeFi space is cooling.
However, this doesn’t mean all hope is lost. In fact, Ethereum’s strategic accumulators are showing no signs of slowing down. In just the past 48 hours, addresses that have never sold their ETH have absorbed more than 640,000 ETH—the largest single-day inflow since 2018. This reflects a growing confidence in Ethereum’s long-term value, with these holders seemingly undeterred by short-term price dips.
Can Ethereum Maintain Momentum?
Ethereum recently recovered from a dip below $1,700, testing resistance near $1,800. With neutral momentum and a slight bullish crossover, ETH must hold above $1,720-$1,750 to target $1,850, or it could drop to $1,650.
Despite the challenges, Ethereum’s growing base of conviction buyers suggests that any price dips might be short-lived, and the long-term outlook for ETH remains promising. Keep an eye on Ethereum’s on-chain data for further signs of accumulation, as the next major move could be just around the corner.
