Ethereum Whales Gobble Up 22.5% More ETH While Lowering Cost Basis—Bullish Signal or Just Another Crypto Casino Move?

Ethereum holders are doubling down—hard. Fresh data from CryptoQuant reveals a 22.5% surge in accumulation as addresses strategically lower their cost basis. Are we seeing diamond-handed conviction or just another round of speculative positioning?

Key takeaway: When wallets buy more at lower prices, it’s either a masterstroke of dollar-cost averaging or proof that crypto ’investors’ still think ’buy high, sell low’ is a meme rather than a warning.

Bonus jab: Wall Street analysts watching this unfold are either taking notes or still trying to explain how an ETF works.

From March 10 to May 3, they reduced their realized price to $1,980, a 2.32% decrease, and significantly ramped up accumulation.

In just under two months, the total ETH held by these addresses grew from 15.5356 million to 19.0378 million, marking a substantial 22.54% increase in holdings.

This behavior suggests a strong belief in Ethereum’s long-term prospects, even though market sentiment remained cautious.

Support Holding, But Market Remains on a Knife’s Edge

Ethereum has seen a turbulent start to May. After beginning the month trading above the $1,800 mark, ETH failed to sustain upward momentum and is currently struggling under the $1,820 resistance zone.

On May 3, Ethereum managed to climb to a local high of $1,873 before slipping back below key support levels, including the 100-hourly Simple Moving Average.

Technical indicators now reveal a short-term bearish trend, with a resistance line forming NEAR $1,835 on the ETH/USD hourly chart.

The immediate risk lies in ETH’s ability to hold above the $1,772 to $1,824 range, a price cluster where over 4.5 million addresses collectively purchased more than 6.36 million ETH.

The average cost basis for this zone stands at approximately $1,799. If ETH dips below this support, analysts warn that the path downward could be steep.

Below $1,772, the data shows significantly lower investor activity, meaning there are fewer buyers to cushion any drop. In such a scenario, Ethereum’s price could cascade toward $1,500.

The most critical support level for #Ethereum $ETH is at $1,770, according to on-chain data from @intotheblock! pic.twitter.com/PtEBRaRlWT

A prominent crypto analyst, Ali Martinez, highlighted this critical juncture in a May 3 post, warning that the ETH price could fall further if this support doesn’t hold.

Yet, others remain cautiously optimistic. If Ethereum can bounce from this zone and break above $1,840, followed by a key resistance at $1,880, it may rally toward $1,950, potentially reclaiming $2,000 if momentum holds.

However, with the RSI dipping below 50 and the MACD turning bearish, the road ahead is fraught with short-term uncertainty.

Speculation of a Breakout Grows with Market Sentiment and Roadmap Catalysts

While price action appears shaky, sentiment among analysts suggests that Ethereum could be on the cusp of a breakout if the right catalyst emerges.

Michaël van de Poppe, founder of MN Fund and a well-known voice in crypto analysis, noted in an April 30 post that Ethereum is consolidating within a falling wedge pattern, a classic setup for a bullish reversal.

$ETH is consolidating before a big breakout upwards.

The liquidity is up for grabs, it just needs a news related item to kick it off. pic.twitter.com/VQaGvfZcA0

Van de Poppe’s observation is supported by declining trade volumes, a hallmark of the falling wedge structure, as resistance levels grow steeper and support flattens.

He argues Ethereum is now in a prime position for a breakout, with bearish sentiment across altcoins creating a contrarian opportunity.

“The next leg upwards is on the horizon,” he also mentioned, calling the extreme negativity around Ethereum and other major altcoins a setup for eventual strong ROI once sentiment turns.

The next leg upwards is on the horizon for the #Crypto markets.

The bearish sentiment remains extreme on #Altcoins and that’s an ideal ingredient for the next leg up.

The anticipated impact of Ethereum founder Vitalik Buterin’s 2025 roadmap adds to potential bullish catalysts.

With Ethereum’s mainnet maturing and Layer 2 solutions continuing to flourish post-Dencun, investors are looking for the next phase of scalability, efficiency, and ecosystem expansion.

While long-term holder behavior reflects strong confidence, and technicals suggest the possibility of a breakout, Ethereum still needs a catalyst to truly reverse the narrative.

Until then, Ethereum’s future rests delicately on the shoulders of those willing to hold and accumulate amid uncertainty, believing not just in the asset’s price but in the platform’s enduring potential.

It remains to be seen whether this sustained accumulation marks an inflection point in Ethereum’s price cycle, but it is clear that strong hands are getting stronger.