In June, the Ethereum market witnessed a notable divergence between price movements and investor behavior. Data shows growing accumulation among long-term holders amidst stable prices.
ETH Accumulation Dynamics
Analysis from CryptoQuant indicates that accumulation addresses for Ethereum recorded increasing volumes throughout June. While ETH prices moved sideways or slightly declined, accumulation volumes continued to rise. "Significant buying pressure from long-term holders emerged during the June consolidation phase, with accumulation volume showing notable divergence," noted analyst @t0_god.
Drop in Dormancy Flow
Glassnode reported that Ethereum's Dormancy Flow has reached its lowest level in years. This metric tracks the average age of coins being moved, with lower values indicating less liquidity. A drop in Dormancy Flow typically signifies low selling pressure and increased holding behavior among long-term investors.
Political Risks Ahead of Fed Forum
Federal Reserve Chair Jerome Powell's upcoming speech on July 1 at a key global monetary forum is amid renewed criticism from former President Donald Trump. Trump has attacked Powell's interest rate policy, arguing that rates should fall to 1–2%. These political pressures contribute to uncertainty regarding future Fed decisions, which could impact crypto markets.
Thus, the rising accumulation of Ethereum among long-term holders amidst declining liquidity and political risks underscores investor confidence in a potential market recovery.
