Ethereum Holders Intensify Accumulation As ETH Price Volatility, Is a Recovery Possible?

ethereumPrice performance in the ongoing bull cycle may lag other notable crypto assets such as BitcoinSolana, and XRP, which formed new all-time highs. However, optimism about the price prospects remains as evidenced by the ongoing accumulation of the digital asset

Confidence in Ethereum is growing among investors

Although Ethereum price is struggling to initiate a major rally, an encouraging sentiment has been spotted among investors. newly, ETH Investors The backlog has increased at a significant rate over the past two weeks.

Kyle Doops, a technical expert and group from the Crypto Banter Gallery, shared the development after examining the new Ethereum backlog metric. Data By Kyle Doops reveals an increase in wallet activity, as both small and large-scale investors increase their ETH holdings.

The expert stated that this trend reflects the steady confidence of investors despite the recent market fluctuations. Furthermore, the expanding interest indicates a strong belief in ETH’s long-term potential, which is attracting many institutional and retail participants.

Ethereum network expansion and dominance Decentralized Finance (Defi) NFT sectors may have played a pivotal role in the ongoing accumulation. Meanwhile, if Accumulation stage extends, could serve as a precursor to the upcoming major price movement of Altcoin.

However, declining market performance threatens a short-term uptrend. Even in the face of market uncertainty, Kyle Doops claims that Ethereum’s future looks increasingly promising, demonstrating his optimism about the asset’s potential.

This is also strong investor activity Shown By Ethereum estimated leverage ratio, which has been climbing for a while. A rise in this key metric indicates increased risk as traders hold more positions with high leverage.

The increase in high-amount thin positions appears to be climbing as ETH consolidates between the $3,200 and $3,500 price range. Given the prolonged stagnation within the price range, Kyle Doops believes that a bullish breakout is likely at this point.

However, he urged investors to be cautious as high leverage may cause liquidations and volatility as seen in the past where the development resulted in volatile price action for altcoin.

Strong ETH rally on the horizon?

ETH still faces a task Resistance is at $3,500raising uncertainty about the next price direction. However, market expert and trader Milkybull has expressed confidence in ETH’s prospects, predicting it will move to unprecedented levels.

Examining the one-month chart, analyst Claims That the infamous spike of ETH that will push it to the $12,000 milestone is gathering steam. Its bold outlook is supported by a growing wedge pattern, which usually honors Noticeable price spikes.

At the time of writing, ETH is trading at $3,381, showing an appreciation of approximately 5% over the past 24 hours. Investors are betting big on renewed upward momentum as trading volume has increased by more than 60% in the past day.

Featured Image from Unsplash, Chart from TradingView.com