Ethereum Price Stagnation Hints at Future Opportunities

NEW YORK, NY — Ethereum (ETH) is currently trading at $1,770, having experienced a 3% drop over the past week and a 1.6% decline in the past 24 hours. This stagnation follows a substantial peak of $4,107 reached in December 2024, continuing a broader corrective trend.

According to CryptoQuant analyst Darkfost, the decline in Ethereum’s spot trading volume may not be as negative as it seems. He noted that while trading activity has decreased, the pace of this decline appears to be slowing. Using a bubble chart, Darkfost analyzed spot volume and found the bubbles representing trade activity becoming smaller and more subdued.

“Less trading volume can act as a stabilizing factor during a downturn, making sharp price drops less likely,” Darkfost explained. He suggested that the current pause in trading activity may indicate that sellers are either finished offloading their assets or holding back, potentially allowing for price consolidation.

Despite caution in his outlook, Darkfost believes the behaviors observed may contribute to a more balanced market structure in the short term. At the same time, other analysts are optimistic about Ethereum’s long-term potential.

CryptoQuant analyst Carmelo Alemán highlighted that many Ethereum holders continue to accumulate ETH, even while facing unrealized losses. The number of accumulation addresses, defined as wallets receiving ETH without significant selling, has risen significantly, increasing their balances by over 22% between March and early May.

“This trend underlines the conviction that long-term holders have in Ethereum, even when current prices appear unfavorable,” Alemán stated.

Additionally, Ethereum’s reserves on exchanges have decreased to multi-year lows, signaling reduced selling pressure and potentially paving the way for future price increases. With the current sentiment coupled with the anticipation around Ethereum’s upcoming Pectra upgrade, which aims to enhance user experience, hope persists for a market recovery.

Investors remain cautious, however, as not all analysts agree that the Pectra upgrade alone will lead to immediate price surges. Edward Chen, co-founder of Parataxis Capital, emphasized the importance of broader adoption and investment incentives for Ethereum’s sustained growth.

As of now, the Ethereum community is holding its breath for further developments. “While current price movements show volatility, signs of accumulation and lowered exchange reserves offer a glimmer of hope for future upward movements in value,” Alemán added.