Ethereum accumulation addresses have witnessed a surge in daily inflows since Friday, suggesting growing confidence in Ether’s (ETH) long-term price trajectory despite its latest drop below $2,000.
Key takeaways:
Ether’s drop below $2,000 has left 58% of addresses with unrealized losses.
Accumulation addresses have absorbed about $2.6 billion in ETH over five days.
Key Ether levels to watch below $2,000 include $1,800, $1,500, $1,200, and potentially $1,000-$750 in extreme scenarios.
58% of Ether addresses are now in the red
Ether’s 38% drop over the last month has seen it fall below key support levels, including the average entry price of accumulation addresses, the cost basis of spot Ethereum ETF investors, and the psychological level at $2,000.
The ETH/USD pair now trades 60.5% below its all-time high of $4,950, leaving a significant portion of holders underwater. This includes BitMine, the world’s largest Ethereum treasury linked to investor Tom Lee, which saw its paper losses swell to over $8 billion.
Related: Large demand zone below $2K ETH price gives signal on where Ether may go
With ETH trading at $1,954 on Wednesday, only 41.5% Ethereum addresses are in profit, while over 58% are in the red.
Ethereum: Addresses in profit, %. Source: Glassnode
Ether’s current market price is also below the average cost basis of accumulation addresses currently at $2,580, suggesting that long-term holders are increasingly under strain.
Ethereum: Realized price for accumulation addresses. Source: CryptoQuant
ETF investors are also feeling the pressure. James Seyffart, senior ETF Analyst at Bloomberg, highlighted that Ethereum ETF holders are currently in a worse position than their Bitcoin counterparts.
With ETH hovering below $2,000, the altcoin trades well below the estimated average ETF cost basis of about $3,500.
Source: X/James Seyffart
Ether accumulation absorbs 1.3 million ETH in five days
Despite the sharp downturn, investor confidence has not fully eroded. Data from CryptoQuant showed Ethereum accumulation addresses have received 1.3 million Ether worth about $2.6 billion at current…
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