Key Insights:
- Long-term ETH price holders increased wallets by 22%, lowering cost basis despite unrealized losses.
- Ethereum nears breakout zone with RSI neutral, volume rising, and Bollinger Bands tightening.
- Options volume surges 75% as traders position long ahead of Pectra upgrade and market movement.
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During an epoch when the price of Ethereum underwent some sort of decline, intelligent investors committed more resources, increasing their ETH holdings by 22.54%. Such strategic moves took place when Ethereum was flirtatiously hanging below the average buy price of several holders, suggesting that most were looking long term.
Source: X
Ethereum hit $1,866.70 on March 10th, a price that made many wallets underwater, their average buy price being about $2,026. But instead of panic selling, these holders doubled down. By May 3rd, the consistent accumulation of these holders had decreased the average cost basis to an easy $1,980, which means sometimes doing nothing except holding proves to be the best strategy.
ETH Accumulation Holds Strong Despite Losses
Ever since Ethereum hit an all-time high at $4,107 in December 2024, it has forever been performing a slow and steady decline on a monthly basis. But, behind this correction, a silent accumulation stands at work. Ethereum long-term holders are digging in, their wallets getting fattier, as short-term blues have not bothered the big boys. What are they seeing that we are missing?
For more than 155 days these wallets just stay quietly accumulating ETH. Their behavior is consistent: they buy, they hold and they have not sold even a single coin.
“Behavior reflects structural conviction & clear expectations of short-term appreciation,” said @oro_crypto, referencing the data tracked in CryptoQuant’s accumulation metrics.
ETH Price Levels Tighten, Traders Watch for Price Breakout
Ethereum’s price finds itself trapped in an intense standoff, with prices seemingly caught between $1,783 and $1,831. The Bollinger Bands are mercilessly squeezing the life out of this range, and a strong resistance at $1,941 is staring like a thundercloud overhead. Bulls are presently sitting on top of the 20-day moving average ($1,739), hoping that it will form the basis for an explosive breakout; otherwise, they will have to face the reality of a breakdown.
Source: TradingView
The Ethereum market is calm yet waiting for something to happen. At the time of writing, the Relative Strength Index (RSI) was at just 54.63 and was right below its trendline- a time of equilibrium for the markets amid neither bullish hype nor bearish fear. Since mid-April, however, there has been a spike in trade volume, hinting that some storm is on the horizon. What with the increasing attention on ETH, volatility is braking at the curb; major price movement is underfoot.
Derivatives Market Suggests Bullish Expectations
The heat is really on when it comes to Ethereum derivatives! Trading volume shot up by 26% to reach a puff-46.3 billion dollars. The open interest crept upward to settle at $21.9 billion, so the real action is in options. Have your seatbelts on because options volume skyrocketed almost 75% to $357.69 million. This portends that traders are preparing for some serious price movements in the very near intensity.
This is really an ochre opportunity for bulls to flex their might. Recent developments in price show very strong leads for the long and much weaker supports for the short. Binance is showing a long-to-short ratio of 2.24, whereas OKX shows 2.04, signaling a magnificent market bull sentiment.
Yet in Binance’s more select sections, the ratio had drastically shifted towards a more optimistic number of 2.76. This would hint that while a shade of apprehension seeped through the rest of the market, the adept investors were placing hearty bets on a near-term uptrend.
Source: Coinglass
With $40.67 million wiped off markets in a day, shorts contributed $8.1 million to the carnage, surprisingly. While for the most part, longs suffered more, repeated short squeezes across periods indicate that some sort of bullish resurgence is brewing.
Ethereum sits on the edge! Sharp-eyed chart analysts are spotting the coiled spring. An ascending triangle is reportedly taking shape by Thecryptomist, with price action compressing into a razor-thin wedge. Is an immense breakout on the cards? Everyone holds their breath now.
“$1950 remains programmed next,” Thecryptomist noted, identifying it as a key level to watch.
Ethereum Upgrade Draws Market Attention to ETH Price
Ethereum is about to receive a massive power-up! Mark your calendars for May 7th because the Pectra upgrade will hit, and it is a game-changer. The old way of validating is out the door- a single validator can stake up to 2,048 ETH as opposed to an earlier limit of 32. But wait, there’s more: Pectra also grants a flood of new data blobs per block. This means warp-speed transactions and a lean mean efficient network are presentations on the horizon! This is a level-up for Ethereum.
The whispers are growing louder on Wall Street with the idea that the Ethereum upgrade is a potential jackpot. Analyst @TedPillows is almost shouting from the rooftops that the buying $ETH now is equivalent to buying BTC at $4,000! So much for crypto speculation; consider assets being reborn on the blockchain and institutions lining up to buy in. Fuse lit.
Ethereum is on the edge–a heady cocktail of long-term stash, derivatives fever, and disruptive protocol upgrade presents a make-or-break moment for the second-largest cryptocurrency in the world. Buckle in.
Thanks for reading Ethereum Whales Grab 22% More as Upgrade Nears ETH Price Breakout Coming?
