Ethereum Accumulation Surges 100% Price Gain Possible

Ethereum (ETH) has been experiencing a notable accumulation pattern, with a specific group of participants steadily acquiring more ETH. These participants, known as "accumulation addresses," consistently receive ETH but rarely sell it, indicating strong confidence from long-term holders and institutional investors. This trend has been observed since June, suggesting a potential upward movement in ETH's price.

According to data from CryptoQuant, the accumulation activity has been increasing throughout June. Analysts from the firm noted that during this period, there was substantial buying pressure from long-term investors, with accumulation volume showing a clear divergence. This pattern historically precedes ETH price rallies, suggesting that a similar upward movement may follow the current accumulation trend.

Currently, ETH is trading near $2,450, which is significantly below its all-time high of $4,890. Reaching or exceeding this price point would require an increase of roughly 100% from current levels. Factors driving renewed investor confidence include observable institutional accumulation. Publicly available data indicates that corporate entities, private companies, DAOs, foundations, and some government bodies now hold over 1 million ETH collectively.

These entities accumulate ETH partly for the yield potential through staking. The Ethereum network operates using proof-of-stake (PoS), which allows holders to lock their ETH to earn staking rewards. Furthermore, firms including Fidelity and 21Shares have filed proposals with the U.S. Securities and Exchange Commission (SEC) seeking to include staking within their planned Ethereum exchange-traded funds (ETFs). Regulatory approval of staking-enabled ETH ETFs could potentially increase institutional demand for the asset.

Based on the sustained accumulation behavior, a substantial price rise appears possible. The accumulation pattern suggests that long-term holders and institutional investors are confident in ETH's future value, which could drive the price higher in the coming months. However, it is important to note that market conditions and other factors could also influence ETH's price movement.