The cryptocurrency world has been buzzing as Ethereum (ETH) accumulation addresses have surged significantly throughout 2024. Since January 2024, the amount of ETH in accumulation wallets has more than doubled, climbing from 11.5 million to an impressive 19 million by October.
The Growth of Ethereum Accumulation Addresses
The increase in Ethereum accumulation addresses, defined as wallets that buy and hold ETH without making withdrawals, has become one of the most important on-chain metrics for assessing market sentiment.
According to CryptoQuant analysis, the amount of ETH held in these wallets rose by 65% in 2024, growing from 11.5 million ETH in January to over 19 million by October. This growth, equating to approximately $50 billion worth of Ethereum, is a shift in investor behavior, with more long-term holders entering the market.
The Impact of Ethereum ETF Approvals
One of the key drivers behind the surge in Ethereum accumulation is the approval of spot Ethereum ETFs. In May 2024, the U.S. Securities and Exchange Commission (SEC) approved the first Ethereum ETFs, which allow investors to gain exposure to Ethereum without directly owning the cryptocurrency.
This approval has led to renewed interest from institutional investors, many of whom see Ethereum as a valuable asset in their portfolios.
The introduction of Ethereum ETFs is expected to significantly increase demand for ETH, as ETFs provide an easier and more regulated way for mainstream investors to participate in the cryptocurrency market.
According to some analysts, the launch of these ETFs could push the price of Ethereum to new highs, potentially surpassing the $4,000 mark. Meanwhile, this renewed interest is not limited to institutions. Individual investors, emboldened by the growing legitimacy of Ethereum as an investment asset, have also been increasing their holdings.
Ethereum Price Surge: What’s Next?
As accumulation addresses continue to grow, Ethereum’s price has experienced periods of upward momentum, with the cryptocurrency trading above $2,700 in October 2024. The increase in whale activity, which refers to large holders accumulating ETH, coupled with the upcoming ETF launches, has led analysts to predict that Ethereum could break through its current resistance level of $3,200.
The accumulation trend is also supported by Ethereum’s staking mechanism, introduced with Ethereum 2.0. Approximately 34% of the total ETH supply, or over 47 million ETH, is locked in stake contracts, further reducing the available supply on exchanges. This reduced sell-side pressure has contributed to the price stability of ETH and could drive prices even higher as demand increases.
While the short-term price movements of Ethereum remain subject to volatility, the long-term outlook is optimistic. Analysts suggest that the combination of accumulation trends, ETF approvals, and staking activity could push Ethereum’s market value to as high as $80 billion by year-end.
Final Thoughts
The surge in Ethereum accumulation addresses since January 2024 is a clear signal of growing confidence in the future of cryptocurrency.
As Ethereum ETFs enter the scene and staking continues to lock up supply, the outlook for ETH looks bullish, potentially leading to a significant price surge in the months ahead.