While Ethereum struggles to regain its footing in early May trading, long-term investors are quietly scooping up ETH at a rapid pace, lowering their entry points and signaling strong conviction in the platform’s future.
From December highs of $4,107 to March lows near $1,866, Ethereum has endured a steep pullback. But on-chain insights from CryptoQuant reveal that long-term ETH holders are not only staying the course—they’re actively adding to their bags.
These accumulating addresses, holding for more than 155 days on average, dropped their realized price from $2,026 to $1,980, a sign of continued buying during the downturn.
In under two months, these addresses increased their total ETH holdings from 15.54 million to 19.04 million, translating to a 22.5% accumulation gain—a clear message that believers are using the dip to strengthen their positions.
Market on Thin Ice as Support Faces Retest
Price action remains fragile. After a brief uptick to $1,873 on May 3, ETH pulled back below resistance at $1,820 and now tests a vital cluster between $1,772 and $1,824, where a massive concentration of tokens was acquired.
If this range breaks, traders may see ETH slide quickly toward $1,500, where support levels are sparse. The MACD and RSI are turning negative, reinforcing bearish short-term pressure.
Still, many traders see this pullback as part of a broader consolidation phase rather than a full reversal.
Bullish Momentum Brewing Beneath the Surface?
Analysts like Michaël van de Poppe believe Ethereum is poised for a trend reversal. He points to a falling wedge pattern and notes waning sell pressure—an early signal of a potential breakout.
Should ETH clear resistance at $1,840 and $1,880, momentum could shift quickly, especially with optimism surrounding Ethereum’s 2025 roadmap, new L2 integrations, and increasing DeFi activity.
Ultimately, it’s the behavior of long-term holders that may offer the clearest signal. As speculative traders exit, seasoned investors are positioning for what they believe could be Ethereum’s next breakout phase.
Whether that materializes depends on both macro factors and internal catalysts—but one thing is clear: the strongest hands are holding, and adding.
