Ethereum Price Surges 7.2% Amid Long-Term Holder Accumulation

Ethereum's price has been experiencing a persistent challenge, with data indicating a significant tug-of-war between long-term holders and short-term traders. Long-term Ethereum holders have increased their positions to a record high of over 22.8 million ETH, demonstrating a strong conviction in the network's long-term value. This accumulation trend has been consistent since 2017, with these addresses, known for their patient buying and holding behavior, continuing to build their positions through major market peaks and corrections.

However, the market dynamics reveal a different story. Short-term traders appear ready to sell into any significant price rally, as evidenced by large spikes in ETH moving onto exchanges during periods of price decline. For instance, early February 2025 saw inflows approach a massive $10 billion, coinciding with ETH’s price falling from approximately $3,000 to $2,500. Similar surges in November 2024 and May 2025 either preceded or occurred alongside price consolidation, while periods of reduced inflows corresponded with price stability and recovery.

Despite these market fluctuations, the network’s daily active user base remains stable, showing consistent engagement. The number of active Ethereum addresses has varied with market events over the past few years, with higher user counts aligning with the price rallies seen in late 2023 and early 2024. However, the number of active addresses has remained relatively stable, pointing to a resilient base of network participants who continue to engage with the ecosystem regardless of short-term market direction.

Recent market movements show renewed momentum, with Ethereum’s price rising 7.2% to $2,429.18, pushing its market capitalization up by a similar margin to over $290 billion. The total and circulating supplies of the token have remained steady at approximately 120.71 million ETH, consistent with Ethereum’s deflationary supply model.

In summary, while long-term holders are accumulating Ethereum at record levels, short-term traders are selling into price rallies, creating a barrier to sustained price increases. The network's underlying usage remains robust, with a stable base of active users, indicating persistent utility despite market volatility. The recent price surge suggests renewed interest and momentum in the Ethereum market, but the underlying dynamics between long-term holders and short-term traders will continue to shape its price movements.