Ethereum’s price momentum eased over the weekend following a breakdown in U.S.-Iran negotiations. However, recent on-chain data indicates this period of uncertainty has had little effect on the market structure of the second-largest cryptocurrency.
A prominent analyst suggests Ethereum may be at an inflection point that could signal the start of a new bullish cycle. According to a Quicktake post on CryptoQuant by analyst CryptoOnchain, significant amounts of ETH have been flowing out of Binance, the world’s largest crypto exchange by volume. This observation is based on the 365-day Simple Moving Average of Ethereum’s exchange netflow on Binance.
This metric has been in steady decline, recently hitting its lowest level since May 2024. Such a trend is often seen as bullish, as it suggests investors are moving assets off exchanges into personal wallets for long-term holding. Historically, this metric has served as a reliable leading indicator for major price movements. As shown in the accompanying chart, whenever this 365-day SMA has reached extreme lows in the past, it was followed by an upward reversal that often coincided with the beginning of a major Ethereum bull run.
CryptoOnchain notes this repeating pattern strongly points to an ongoing accumulation phase for Ethereum. “When netflows hit extreme lows on a long-term moving average, it typically indicates that investors are withdrawing their assets from exchanges for long-term holding, thereby drastically reducing immediate sell pressure in the market,” the analyst wrote.
The analyst further stated that if history repeats, the current formation of a bottom could establish the structural foundation for Ethereum’s next major upward macro trend. Market participants are advised to watch this metric closely for a “decisive upward pivot” to confirm the start of a new bullish cycle.
As of this writing, Ethereum’s price is approximately $2,353, reflecting a decline of over 3% in the past 24 hours. While the altcoin dipped following the closure of the Strait of Hormuz, this daily movement hasn’t erased last week’s gains. According to CoinGecko data, Ethereum’s price is still up about 2% over the past seven days.
Frequently Asked Questions
FAQs Ethereum Accumulation Phase
BeginnerLevel Questions
1 What does accumulation phase mean for Ethereum
An accumulation phase is a period where large investors are steadily buying and holding Ethereum often during a price dip or a period of low volatility instead of selling it
2 How do I know if Ethereum is in an accumulation phase
Common signs include the price trading in a tight range for an extended period high volumes of Ethereum moving off exchanges into longterm storage wallets and onchain metrics showing large purchases by big holders
3 Is an accumulation phase a good thing
Generally yes It suggests that informed investors believe the current price is a good value and are positioning for future price growth which can be a bullish signal
4 Does accumulation guarantee the price will go up
No it does not guarantee a price increase It indicates strong underlying demand and potential for an upward move but broader market conditions news and adoption still play a major role
5 What should a beginner do during an accumulation phase
It can be a good time for disciplined investors to consider starting or adding to a position using a strategy like dollarcost averaging rather than trying to time the exact bottom
Intermediate Advanced Questions
6 What typically happens after an accumulation phase ends
Historically accumulation is often followed by a markup phase where buying pressure overcomes selling pressure leading to a sustained price increase as the asset gains broader attention
7 What are the key onchain metrics to watch for accumulation
Watch for
Exchange Netflow More ETH flowing off exchanges than onto them
Supply in Profit A low percentage suggests prices are near a bottom enticing accumulation
Large Holder Netflow Tracking the buyingselling patterns of wallets holding 1000 ETH
8 Whats the biggest risk or problem during accumulation
The main risk is false breakout or breakdown The price can break below the accumulation range or get stuck in the range longer than expected testing investors patience
9 Can accumulation happen at market tops
Yes sometimes what looks like accumulation can be