From the beginning of 2025, Ethereum [ETH] has faced challenges in sustaining an upward trend. Throughout this duration, its value has dropped below $3k and peaked at $3.7k.
When looking at the weekly charts, Ethereum has consistently traded within a range of consolidation, fluctuating between $3.5k and $3k.
At present, Ethereum is valued at $3215, showcasing a 3.21% decline on daily charts, further extending the bearish trend seen on weekly charts by 4.57%.
Despite this decline, investors have viewed it as an opportunity to buy. Consequently, many participants in the market are actively amassing ETH, expecting a rebound in prices.
Surge in Ethereum Accumulation
Recent data from CryptoQuant reveals a significant surge in Ethereum accumulation over the last fortnight. This uptrend indicates increasing confidence among investors regarding Ethereum’s future potential.
Despite the prevailing market volatility, investors remain positive and choose to HODL during this period.
This particular market trend is more apparent in the futures market community. Therefore, Ethereum’s leverage ratio has soared, showcasing a rise in the demand for highly leveraged positions within the derivatives sector.
Given Ethereum’s current consolidation phase and the heightened leverage activity, it could pave the way for a breakout. A breakout instigated by high leverage may ignite a substantial price movement.
Hence, the current market scenario hints at a probable uptrend breakout. When investors are accumulating assets while showing a keen interest in leveraged positions, it signifies an optimistic stance from investors.
Implications for Ethereum Charts
An escalation in the accumulation rate implies that investors perceive the current market price of Ethereum as undervalued and anticipate significant growth potential for the asset in the future.
According to CryptoCrypto’s assessment, Ethereum has garnered increased positive sentiments. Notably, Ethereum’s stock-to-flow ratio has surged from 6.87 to 67.57, showcasing escalating scarcity.
An increase in the SFR implies Ethereum is becoming scarcer on exchanges as investors shift their holdings to private wallets or cold storage, indicating a rise in accumulation.
Typically, heightened scarcity leads to price surges if demand holds steady or rises.
Furthermore, Ethereum’s Bitmex basis ratio has remained positive over the last seven days. This indicates that investors anticipate a bullish trend for ETH in the future, thus willing to pay a premium for future contracts.
This trend reflects optimism, as those with long positions are compensating shorts to maintain their stakes.
In essence, the spike in accumulation points towards a sentiment shift as investors adopt a bullish outlook. These market conditions position Ethereum for potential price recovery and a breakout from its consolidation zone.
If investors can sustain their current appetite for accumulation, Ethereum could breach $3450 once again and surpass the resistance at $3500.
However, failure in this endeavor by the bulls might lead to a drop in the altcoin’s value towards $3k and potentially below this crucial support level.