Ethereum Accumulation Addresses Hit 22.8 Million ETH Amid Transaction Surge

Ethereum’s accumulation addresses have reached an unprecedented high, with a total of 22.8 million ETH held in wallets that exclusively receive the cryptocurrency and never spend it. This significant accumulation suggests a strong conviction among long-term holders (LTHs), who appear to be positioning themselves for a major move in the market. The total balance held by these wallets has shown a parabolic rise, despite Ethereum’s price remaining well below its all-time high. This level of accumulation surpasses previous cycles and may continue to accelerate into July, potentially setting the stage for an explosive summer rally if historical trends repeat.

Ethereum recently recorded its highest transaction count since early 2023, surpassing 1.5 million daily transactions. This surge in on-chain activity indicates growing network usage and rising speculation, often a precursor to bullish momentum. Additionally, the stablecoin market dominance has been hovering near historical resistance levels that marked major cycle tops in previous years. A rejection from this level has historically triggered capital rotation into riskier assets, potentially kickstarting an altseason. If Ethereum breaks higher while stablecoins retreat, it could signal the early signs of a broader altcoin rally.

Despite the strong accumulation and spike in transaction activity, Ethereum still faces technical hurdles. At the time of writing, Ethereum was trading near $2,460, stuck below both the 50-day and 200-day moving averages, which are key resistance levels. The Relative Strength Index (RSI) was around 49, while the Moving Average Convergence Divergence (MACD) showed signs of flattening after prolonged bearish divergence. The On-Balance Volume (OBV) has been weak, reflecting limited buying pressure. However, with fundamentals flashing green and macro signals hinting at an altcoin rotation, a break above $2,600 could quickly open the doors to $3,000 if Ethereum can overcome its current trendline resistance.

In summary, Ethereum’s accumulation addresses hitting a record high, coupled with a surge in transaction activity and stablecoin market dynamics, suggests a potential for a significant rally. However, Ethereum must break through key resistance levels before a rally to $3,000 is confirmed. The current technical indicators present both challenges and opportunities, with a break above $2,600 being a critical milestone for Ethereum to reach its next major price target.