Recent analysis revealed that Ethereum's dormancy flow has fallen below 1 million for the first time in two years. This may indicate asset accumulation by long-term holders and a potential market trend reversal.
Analysis of Ethereum's Dormancy Flow
According to analyst Ali, Ethereum's dormancy flow dropped to 979,317 on April 10, 2025, marking the lowest level since mid-2022. This level has historically coincided with market bottoms, suggesting Ethereum may be undervalued and accumulation could be occurring.
Relationship Between Dormancy Flow and Price
From 2018 to 2025, Ethereum's dormancy flow followed a descending trajectory, consistently recording lower highs and lows. Meanwhile, the price of ETH moves in cyclical waves. Each time the dormancy flow fails to reclaim previous highs suggests weakening conviction among long-term holders.
Long-Term Investor Sentiment Signals
Dormancy flow also acts as a sentiment gauge for long-term investors. High values are typically associated with profit-taking phases while low values indicate accumulation. The current low levels align with this trend, as fewer aged coins are moving despite price fluctuations.
Therefore, the current level of Ethereum's dormancy flow suggests possible accumulation and confidence among long-term holders. While short-term volatility may persist, market trends indicate potential upward movements.
