Ethereum Sees Strategic Accumulation Despite 90% DeFi TVL Drop
1min read Ethereum is undergoing a significant transformation beneath the surface, as strategic buyers are accumulating the cryptocurrency despite muted market sentiment and a slowdown in decentralized finance (DeFi).
On-chain data reveals a narrative of strategic accumulation and growing conviction among seasoned holders. Long-term wallets have hit record inflows, signaling deepening confidence even as Ethereum trades below key resistance levels. This behavior contrasts sharply with Bitcoin, pointing to a maturing investor base that may be positioning for the next major move.
The supply dynamics of Ethereum tell a contrasting story compared to Bitcoin. There is no significant resurgence from first buyers or momentum buyers, with the Relative Strength Index (RSI) for these cohorts remaining muted. However, conviction buyers have shown consistent accumulation since late March, maintaining a strong RSI around 80, signaling steady belief despite broader market hesitation.
Loss sellers peaked around the 16th of April but have since decelerated, with RSI falling below 50, suggesting a slowdown in panic selling. This shift in cohort behavior indicates a more strategic accumulation phase rather than a fear-driven exit, pointing to emerging confidence among seasoned holders.
Despite a recent uptick in trading activity, Ethereum’s DEX ecosystem is still far from its peak. Total Value Locked (TVL) in Ethereum-based DEXs has dropped nearly 90% from all-time highs, while monthly trading volume is down about 55%. Users may be shifting to other chains or opting for off-chain solutions amid market uncertainty.
However, a deeper trend is emerging. Accumulating addresses—wallets that have never sold—are absorbing ETH at unprecedented levels. In just the last 48 hours, these addresses took in over 640,000 ETH, the largest inflow since 2018. This behavior shows growing confidence among long-term holders despite price weakness.
Ethereum’s recent price action showed signs of a short-term recovery, but momentum remained fragile. After a sharp drop below $1,700, ETH rebounded to test resistance near $1,800. The RSI sat around 52, signaling neutral momentum, while the MACD showed a slight bullish crossover—a potential sign of positive trend continuation. However, volume remained modest, and the rejection near $1,800 suggested that sellers were still active. If ETH can hold above the $1,720-$1,750 range, a retest of $1,850 is possible. But a failure to maintain support may open the door for a drop back toward $1,650.
