Ethereum (ETH) has shown a steady recovery over the past few days, driven by improving sentiment across the broader crypto market.
The world’s second-largest cryptocurrency is trading near multi-month highs, but its path back to the $5,000 level could face resistance due to weak investor accumulation.
Ethereum accumulation is recovering
Ethereum’s holder accumulation rate currently sits at 30%, well below the 50% threshold that typically indicates strong accumulation behavior. A ratio above this mark often suggests that long-term investors are actively purchasing ETH, reflecting confidence in its sustained growth.
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Historically, Ethereum’s accumulation rate has tended to rise between 40% and 45% during periods of steady price growth. The recent gains, while modest, suggest that sentiment is gradually improving.
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Ethereum’s “age of consumption” indicator has spiked twice this month, indicating a notable increase in activity among long-term holders. This on-chain metric measures when a previously dormant coin becomes active again, often indicating that old holders are selling. Repeated spikes suggest that long-term investors’ confidence may be weakening.
Consistent selling from long-term holders typically precedes short-term price corrections to introduce new supply to the market. If this surge continues, Ethereum could face increasing resistance as it climbs toward new highs.
ETH price is struggling to rise
Ethereum price is currently trading at $4,147, just below the key resistance level of $4,222. If this barrier is successfully breached, ETH could rise towards $4,500. This will further fuel inflows from both institutional and retail investors.
If accumulation strengthens and confidence returns, Ethereum could move towards an all-time high of $4,956 and even reach $5,000. This will be a decisive signal of market recovery and renewed bullish momentum.
However, if bearish sentiment intensifies or long-term holders continue to sell their holdings, Ethereum could fall below $4,000. A deeper correction could push the price below $3,872, invalidating the bullish theory and suggesting fresh selling pressure on the market.
