Recent analysis from an on-chain analytics firm reveals a significant uptick in the amount of Ethereum (ETH) held in accumulation wallets, now exceeding 19 million ETH. In January 2024, these wallets contained approximately 11.5 million ETH, indicating a substantial increase in investor interest in the cryptocurrency. This surge is believed to signal that many investors expect a potential rally in the digital asset market as 2024 approaches its end.
The growth in the number of accumulation addresses is largely attributed to recent regulatory developments. The approval of Ethereum -based exchange-traded funds (ETFs) by the US Securities and Exchange Commission earlier this year has provided much-needed regulatory clarity, bolstering confidence in Ethereum . This newfound mainstream acceptance is attracting both institutional and individual investors, positioning Ethereum as a significant player in the future of finance. Projections suggest that the amount of ETH in accumulation wallets could surpass 20 million by year-end, leading to a collective value that could exceed $80 billion when considering current market prices.
As of mid-October 2024, Ethereum spot ETFs in the US have accumulated net assets totaling $7.35 billion, which represents approximately 2.3% of Ethereum ’s market cap. Recent trends show a resurgence of interest, with ETH spot ETFs experiencing net inflows of $78.9 million after a brief period of outflows.
Further insights indicate that around 70% of ETH holders are currently making a profit, with the majority having held their assets for over a year. This trend suggests that many investors are not keen on selling their holdings, which could create upward pressure on prices. Yet, if a significant number of profitable holders decide to take profits, this could lead to increased selling pressure, potentially resulting in greater volatility for ETH.
Moreover, there has been a notable increase in open interest for ETH, which may lead to further price movements. Analysts believe that if Ethereum can overcome critical resistance levels, such as the $2,640 mark, it could trigger a significant price rally. As of the latest update, ETH is trading at approximately $2,663, reflecting a 2.4% decline over the past day.
