Ethereum Investors Hold Firm Despite Price Dip, Average Purchase Price Declines

Recent analysis from the cryptocurrency market intelligence platform CryptoQuant highlights a noteworthy trend among Ethereum (ETH) holders in recent weeks. These investors are demonstrating a strong reluctance to sell their ETH holdings, even in the face of a price downturn for the second-largest cryptocurrency by market capitalization.

Ethereum Holders Show Resilience Amid Price Decline

In a post on X (formerly Twitter) this Monday, CryptoQuant indicated that a segment of Ethereum investors maintains a strong conviction in the asset. Their actions suggest a prevailing optimism regarding the project and its broader ecosystem. Analyst Carmelo Aleman pointed out how long-term ETH holders have steadfastly weathered a consistent price decline from a high of $4,107 in December 2024.

The market experienced a further shift around March 10th, when the price of ETH fell below the $2,000 mark. This drop pushed addresses identified as “accumulating addresses” into a state of unrealized loss. These accumulating addresses, often associated with Ethereum whales, consistently receive ETH without significant selling activity. Their overall ETH balance tends to remain stable or even increase over time, regardless of whether they represent large or small holders.

Average Purchase Price Sees Notable Decrease

Notably, the average purchase price, or cost basis, for these accumulating addresses has seen a significant decline. Since March 10th, their Realized Price has fallen from $2,026 to $1,980 as of May 3rd. This represents a 2.32% decrease in their average acquisition cost during this period. At the time of reporting, the price of Ethereum was trading at $1,810.63, having experienced a 0.94% decrease in its 24-hour gains, according to data from CoinMarketCap.

CryptoQuant’s analysis suggests that the on-chain behavior of these Ethereum holders reflects a fundamental conviction in the asset and clear expectations for price appreciation in the near term. This sentiment aligns with the ongoing development and evolution of the Ethereum network. Market observers are keenly watching to see if this positive conviction among ETH holders will ultimately translate into upward price momentum for the cryptocurrency.

Potential Catalysts for Ethereum Price Growth

Several upcoming events could potentially fuel a price recovery for ETH in the coming weeks. The Ethereum Pectra Upgrade is officially scheduled for launch on May 7th.

A key feature expected with the Pectra Upgrade is an enhancement to staking, alongside improvements in scalability and usability. This anticipated upgrade could positively influence the price of Ethereum, potentially benefiting the accumulating addresses.

Furthermore, flows into Ethereum ETFs (Exchange Traded Funds) are showing signs of improvement, indicating a potential shift in market sentiment. If this trend is sustained, it could also have a positive ripple effect on the price of the cryptocurrency.

This analysis was based on information originally published by U.Today.