Ethereum Investors Remain Steadfast Amid Unrealized Losses – Is a Rally on the Horizon?

A latest analysis indicated that Ethereum (ETH) accumulation addresses continue to gather ETH, despite facing unrealized losses. The contributor highlighted that these addresses are increasing their ETH amounts even though prices remain significantly below previous highs.

Ethereum Holders Maintain Their Positions Despite Losses

After peaking at $4,107 in December 2024, ETH has seen a drastic decline of over 50% and is currently around the $1,800 range. Long-term ETH holders, particularly those associated with accumulation addresses, remain steadfast. Instead of liquidating their assets, they are holding on strongly.

Further Insights

Since March 10, on-chain analytics reveal that numerous accumulation addresses have entered into unrealized loss regions. Notably, ETH briefly dipped to a local low of $1,866 while its Realized Price was recorded at $2,026.

An accumulation address is a wallet that consistently receives and retains a specific asset, such as Ethereum, without transferring it. Typically, these addresses belong to long-term holders who maintain ETH for over 155 days.

When accumulation addresses keep acquiring assets amid falling prices, it often indicates that investors foresee a potential bullish trend ahead. These wallets represent “strong positions” within the marketplace.

The Realized Price indicates the average price at which all coins in a cryptocurrency network were previously transacted. This is calculated by dividing the total realized market cap by the circulating supply, and it illustrates the combined cost basis of holders, thereby serving as an indicator of whether the market is in profit or at a loss.

Since March 10, the Realized Price for these addresses has decreased by 2.32%, from $2,026 to $1,980 as of May 3. However, rather than retracting, these addresses have significantly increased their ETH holdings. The contributor remarks:

In spite of the downward trend, and even while incurring unrealized losses, accumulation addresses have not deviated from their strategy. Instead, they expanded their ETH holdings: on March 10 they held 15.5356M ETH, and by May 3 this had increased to 19.0378M ETH, marking a 22.54% rise according to the ETH Cohort analysis and Balance on Accumulation Addresses.

Is ETH at the Bottom?

While several analysts caution that ETH may drop further, potentially down to $1,200, there are others convinced that the second-largest cryptocurrency by market capitalization might have already reached its cycle low.

Further Insights

Adding to the positive sentiment, ETH has recently formed a golden cross on the daily chart, a favorable technical indicator often indicative of upcoming upward momentum. Currently, ETH is priced at $1,801, showing a 1.4% decline over the last 24 hours.