Ethereum has once again fallen below the key $2,000 mark, reflecting renewed selling pressure across the broader cryptocurrency market. This drop has returned ETH to a technically fragile zone, where market sentiment can quickly worsen as traders reassess their risk and liquidity tightens.
A recent CryptoQuant report adds context by analyzing “accumulating addresses”—wallets held by long-term, committed investors. These addresses have never sent ETH out, have received at least 100 ETH in their latest deposit, show multiple incoming transactions, hold over 100 ETH, and have been active for the past seven years, excluding exchanges, miners, and smart contracts.
According to the report, these accumulation addresses now hold roughly 27 million ETH, about 23% of the circulating supply. This suggests a significant portion of Ethereum remains in strong hands despite recent volatility. However, persistent selling below $2,000 underscores the market’s sensitivity to macroeconomic conditions, leverage, and shifting capital flows, placing Ethereum at a critical near-term juncture. Whether buyers defend this level or allow further declines will likely influence sentiment, volatility expectations, and positioning across Ethereum’s spot and derivatives markets.
### Ethereum Trades Below Accumulating Address Realized Price
The same CryptoQuant analysis shows that Ethereum is currently trading below the Realized Price of these accumulating addresses. This metric represents the average purchase price for these long-term holders. Historically, trading below this level has been rare and often linked to periods of significant market stress.
The report notes that ETH has traded below this realized price only twice in the past nine years. The first instance was during the 2025 cycle low, a period of broad market weakness and liquidity contraction. The second has been occurring since January 2026, indicating current market conditions are again testing the cost basis of long-term holders.
Structurally, this deviation can be interpreted in two ways. It may signal capitulation and undervaluation, where weaker investors sell while stronger ones accumulate. Alternatively, prolonged trading below these cost levels could reflect ongoing macroeconomic pressures, weak demand, or deleveraging that is delaying a recovery.
### Price Action Showing Weakness
Ethereum’s price action continues to show structural weakness on the weekly chart. ETH recently lost the psychological $2,000 level after failing to hold above its key moving averages. This breakdown has pushed the price back below a mid-cycle support area that previously served as both accumulation and breakout territory.
ETH remains below its shorter-term weekly moving average, and longer-term trend lines are flattening, indicating slowing momentum rather than a clear trend continuation. Volume patterns also suggest distribution, with recent sell-offs accompanied by increased trading activity—typically associated with risk reduction and position unwinding.
Historically, similar patterns have led to either extended consolidation or deeper corrections, largely depending on broader liquidity conditions and macroeconomic risk appetite. If buyers fail to quickly reclaim the $2,000 region, downside targets could shift toward previous high-volume support areas near the $1,600–$1,700 range, where historical demand has emerged.A decisive recovery above that level would improve sentiment and suggest the recent drop was mainly a leverage-driven shakeout, rather than the start of a broader structural downtrend for Ethereum in this cycle. Until then, price action is likely to remain sensitive to shifts in macro liquidity and positioning in the derivatives market.
Frequently Asked Questions
FAQs LongTerm Ethereum Holders Increasing Investments During Market Downturns
BeginnerLevel Questions
Q1 What does it mean that longterm Ethereum holders are increasing their investments
A It means people who have held Ethereum for a long time are buying more coins even while the overall market price is falling
Q2 Why is this considered an unusual market signal
A Typically falling prices scare investors into selling When longterm holders buy instead it goes against the usual panic selling behavior suggesting they see current prices as a good longterm opportunity
Q3 Who exactly are longterm holders
A They are investors who hold their ETH in wallets for extended periods indicating they are not looking for quick profits but believe in Ethereums future value
Q4 Is this a sign that the price of Ethereum will go up soon
A Not necessarily While it can indicate strong underlying confidence it doesnt guarantee an immediate price rebound Its more a signal of longterm belief than a shortterm price predictor
Q5 As a new investor should I follow their lead and buy more ETH when its down
A Only if it aligns with your own research risk tolerance and longterm strategy Never invest based solely on what others are doing Consider dollarcost averaging to manage risk
Intermediate Advanced Questions
Q6 How do we know longterm holders are buying more Where does this data come from
A Data comes from analyzing public blockchain addresses Analytics firms track wallet activity categorizing addresses by how long theyve held coins An increase in coins moving into these longterm holder wallets signals accumulation
Q7 What are the main reasons these holders might be buying during a downturn
A Key reasons include
Belief in Undervaluation They think the current price is below Ethereums fundamental longterm value
Cost Averaging Theyre lowering the average price they paid for all their ETH
Confidence in Fundamentals Strong belief in Ethereums ongoing upgrades and its ecosystem regardless of shortterm price action