Ethereum's Price Drop Hides Growing Buying Activity

Ethereum's Price Declines, But Buying Activity Suggests Potential Breakout

Ethereum's price has been on a downtrend, but a notable increase in buying volume may indicate a shift towards accumulation. Historical trends suggest that rising buying volumes during price declines often precede significant recoveries. Ethereum's taker buy volume has risen sharply despite an 11% price decline from $3,750 in early January to $3,350 at press time, signaling growing market activity.

The data illustrated Ethereum's taker buy volume – a metric tracking the volume of buy orders executed at market price – across all exchanges, overlaid with its 100-day simple moving average. This trend mirrors the May 2024 accumulation phase, where taker buy volume surged past its 100-day SMA during a price correction, preceding a sharp 27% rebound to $4,750. The same pattern might be visible now, with taker buy volume exceeding $4 billion as the SMA trends upwards.

Historically, such divergences between price and buying volumes indicate institutional accumulation or whale positioning. Could this mark the start of another accumulation-driven breakout for Ethereum?

Ethereum's historical price movements reveal a recurring pattern – price declines accompanied by rising buying volumes often precede significant surges. A notable instance occurred in December 2024, when Ethereum's price fell to around $2,500. Despite this downturn, however, taker buy volume across exchanges increased, indicating accumulation by investors anticipating a rebound. This accumulation phase culminated in a rally that saw the price climb to approximately $3,700 in early 2025.

Similarly, in May 2024, Ethereum noted a price drop, yet buying activity intensified, leading to a subsequent price surge. These patterns implied that rising buying volumes during price declines can serve as indicators of potential upward moves. If this trend continues, it could signal an impending breakout, in line with historical precedents where a hike in buying interest during downturns has preceded significant price recoveries.

At press time, Ethereum's weekly chart showed the price consolidating near $3,228 – just above the key support level of $3,000. The RSI was flashing neutral momentum without clear overb