Ethereum

2024

Carl

The accumulation of <a href="https://yellow.com/asset/eth" rel="noopener noreferrer nofollow">Ethereum</a> has seen a significant uptick, with key addresses now holding over 19 million ETH, according to a detailed <a href="https://www.newsbtc.com/ethereum-news/ethereum-accumulation-rises-as-70-holders-are-in-profit-what-it-means-for-eth-price/" rel="noopener noreferrer nofollow">report</a> by on-chain analytics firm CryptoQuant. This increase, nearly doubling since early 2024, suggests a significant level of investor confidence in Ethereum's long-term prospects.
Verified CryptoQuant analyst Burak Kesmeci relates that these "accumulation addresses" have expanded their ETH holdings from approximately 11.5 million at the start of the year, predicting possibly exceeding 20 million ETH by the year's end. This surge hints at investors' anticipation of a digital asset market rally as 2024 concludes. Several critical factors drive this accumulation trend.
Significantly, the US Securities and Exchange Commission's approval of Ethereum-based exchange-traded funds (ETFs) earlier this year has been a pivotal factor. According to Kesmeci, these regulations have provided much-needed clarity, propelling Ethereum into the mainstream financial landscape. No longer limited to tech enthusiasts, the cryptocurrency has garnered attention from institutions and individual investors. Predictions suggest that these addresses could potentially hold over 20 million ETH, translating to a value exceeding $80 billion, rivaling major global companies.
As of October 18, 2024, ETH spot ETFs domiciled in the US have amassed net assets worth $7.35 billion, equivalent to nearly 2.3% of Ethereum's market cap. Despite recent outflows, last week's influx of $78.9 million indicates renewed investor interest.
Data from IntoTheBlock reveals that a substantial 70% of ETH holders are currently in profit, contrasting with 28% in loss and 2% at breakeven. Furthermore, a steadfast 74% of holders have retained their ETH for over a year, whereas 23% have held it between one month and a year. This reluctance to sell suggests confidence in Ethereum’s potential appreciation.
However, this profitability carries potential shifts in buying pressure—if profitable holders decide to sell, increased volatility might ensue. Yet, the prospect of rising ETH prices remains as investor interest continues.
Recent spikes in open interest for ETH underpin these volatility expectations. Analysts speculate that ETH might retest key resistance levels before further upward momentum. Crypto analyst Carl Runefelt, for instance, speculates that breaching the $2,640 resistance could spark a substantial rally. At the moment, ETH trades at $2,663, marking a 2.4% dip in the last 24 hours.

Ethereum Accumulation Soars With 70% Holders Profitable - Bull Signal for ETH?

Yellow News

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