Ethereum’s Silent Army Grows: 22% More Accumulation Addresses—Even as Paper Losses Stack Up

Whales keep gobbling ETH like it’s a Black Friday fire sale—never mind that their bags are currently underwater. Here’s why the smart money’s playing the long game while retail panics.

The Contrarian Bet: Over 1.8M ETH accumulation addresses now exist, per Glassnode data. That’s a 22% surge since January, proving institutional players see blood in the water as a buying opportunity.

Pain Before Gain: These diamond-handed wallets are sitting on 15% average unrealized losses after ETH’s recent dip below $3K. But remember—the same crowd bought the 2022 crash at $900 and rode it to $4,800.

The Cynic’s Corner: Meanwhile, hedge funds are probably shorting the same ETH they’re accumulating—because why make one bet when you can profit from both sides and charge 2-and-20 for the privilege?

• Ethereum dropped from $4,107 in December 2024 to around $1,787 but holders kept buying.
• Accumulation wallets boosted their holdings by 22.54%, rising from 15.5M ETH to 19M ETH recently.
• Analysts expect a sharp rise, targeting $7,000 in 2025 and $10,000 by Q1 2026.

Ethereum holders are holding tight to their investments, showing signs of confidence despite facing significant unrealized losses. Recent on-chain data reveals that wallet addresses known for steady accumulation have not only kept their Ethereum but have increased their holdings over the past months.

Ethereum hit a cycle peak of $4,107 in December 2024 but has since fallen over 56.49%, currently trading around $1,787. Instead of reducing exposure, long-term holders have kept buying. These wallets, often labeled as accumulation addresses, are now showing unrealized losses but remain active.

Accumulation addresses are wallets that receive and hold Ethereum without transferring it out for at least 155 days—have recently slipped into the red. Since March 10, these long-term holders have found themselves at a loss as Ethereum dipped to a low of $1,866,  while the average price these holders paid (known as the Realized Price) was about $2,026.

Ethereum Holdings Rise Despite Red Numbers

Between March 10 and May 3, the Realized Price declined by 2.32%, falling from $2,026 to $1,980. Despite the growing losses, holders increased their ETH holdings from 15.5356 million to 19.0378 million, according to CryptoQuant contributor Carmelo Aleman. That marks a 22.54% increase in Ethereum held by accumulation addresses over just two months.

Aleman noted, “Despite the continued downtrend, and even while in unrealized losses, accumulating addresses have not abandoned their strategy. Instead, they increased their ETH exposure.” This kind of buying behavior from long-term holders often signals that investors are expecting a major market shift.

Signs from the derivatives market add further weight to this expectation. CryptoQuant analyst Darkfost pointed out that selling pressure is fading. On April 23 and 24, net taker volume flipped positive, indicating that buyers are beginning to gain the upper hand over sellers. If this trend holds, Ethereum might be setting the stage for a market bottom.

Market Sentiment Points Toward a Strong Recovery

One trader “Crypto Eagles” took to X on May 6 to outline the broader picture for Ethereum. According to the post, Ethereum is moving through a three-phase market cycle. The first was the corrective phase in 2022, followed by the ongoing recovery phase that began in 2023. The next, the impulsive phase, is expected to kick off in 2025 and run through the first quarter of 2026.

In this final phase, the trader believes Ethereum will rise sharply, climbing past $7,000 in 2025 and reaching $10,000 by Q1 2026. If accumulation trends and easing sell pressure continue, this scenario might not be far off.

Investors watching these developments may see the current downturn not as a warning but as preparation for a stronger rally ahead. The growing confidence among seasoned holders shows a community undeterred by short-term losses and focused on long-term gains.

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