Ethereum Price Forecast: Active Addresses Halt Growth as US Selling Pressure Eases

Ethereum (ETH) network growth has stalled over the past week, halting an explosive rise seen in the past two months. Active addresses and transaction counts surged during the period despite a 42% decline in ETH's price. ETH accumulation addresses have intensified buying activity over the past few months as prices declined, representing one of the fastest growth rates on record.

Whales or wallets holding 10K-100K ETH have resumed accumulation as prices dipped, scooping up 840K ETH since February 4. This contrasts with retail investors, who saw a brief period of accumulation at the beginning of the week but returned to distribution as the week progressed.

Ethereum's price has struggled to maintain a sustained recovery above $2,000, with mixed signals from whale activity and long-term holders contributing to a lack of direction. Whale addresses sold 1.3 million ETH in early February but then purchased 1.25 million ETH within the next 48 hours, indicating liquidity without a clear directional bias.

Why the Move Happened

Ethereum's price has been range-bound due to mixed signals from whale activity and long-term holders. The absence of consistent accumulation from dominant investor groups has limited Ethereum's ability to break through resistance levels like $2,241. Long-term holders began selling lightly in early February, showing growing uncertainty.

How Markets Responded

Investors are pumping funds into ETH staking, with the queue of assets waiting to join active staking rising to 3.82 million ETH. This indicates a shift in investor behavior toward staking despite the bearish trend. On the derivatives side, leverage has failed to return, and funding rates continue to show negative values, indicating rising short positioning.

What Analysts Are Watching

Ethereum exchange reserves, which measure the total supply of ETH in exchanges, have increased by more than 180K ETH in the past five days. This trend is also evident in US spot ETH ETFs, which recorded a fourth consecutive week of net outflows totaling $161.1 million.

US selling pressure is gradually easing, with outflows in US spot ETH ETFs slowing and the Coinbase Premium Index showing slight improvement. However, open interest has slightly dropped to 11.76 million ETH, and funding rates continue to show negative values, indicating rising short positioning.

Consolidation around $2,000 is expected until stronger directional conviction emerges. The lack of synchronized buying pressure has limited Ethereum's ability to break through key resistance levels.

Analysts are closely watching the queue of assets waiting to join active staking and the behavior of accumulation addresses. These indicators provide insight into investor sentiment and potential future price movements.

The market is also monitoring the activity of whale addresses and long-term holders for signs of consistent accumulation or distribution. Such behavior can influence Ethereum's price trajectory and investor confidence.