Ethereum (ETH) is stuck in a rut, trading around $1,770. It’s down slightly from its recent high, and while the price isn’t moving much, some interesting things are happening behind the scenes.
Spot Volume is Dropping
CryptoQuant analyst Darkfost noticed that Ethereum’s spot trading volume is steadily decreasing. Think of it like this: fewer people are buying and selling ETH right now. Normally, this would be a bad sign, but Darkfost sees it differently. He thinks less trading during a price dip could actually be a good thing. It might mean sellers are tapped out, leading to less volatility and a more stable price in the short term. However, he cautions that this doesn’t mean the price has hit bottom; it’s just a possible temporary pause.
Long-Term Holders are Buying the Dip
Another CryptoQuant analyst, Carmelo Alemán, looked at what long-term Ethereum holders are doing. These are investors who hold onto their ETH for a long time, even if the price goes down. Interestingly, many of these long-term holders are still buying more ETH, even though they’re currently losing money on their investment (unrealized losses). Between March and early May, they increased their holdings by over 22%!
This is a big deal. It shows strong belief in Ethereum’s future. Historically, this kind of buying during a downturn often precedes a price increase. Why? Because less ETH available to sell means the price is more likely to go up when demand picks up again.
