Although price movement has been limited, on-chain data suggests that certain underlying shifts could influence market behavior in the near term.

Ethereum Sees Plunge In Spot Volume

CryptoQuant analyst Darkfost has reported that Ethereum’s spot volume is experiencing a consistent decline. His analysis focuses on a bubble chart that visualizes two dimensions: the size of each bubble represents spot volume, and its color indicates the volume change rate.

According to the data, the bubbles have become progressively smaller and lighter in color, indicating that fewer trades are being conducted and that the pace of decline in volume is slowing.

While declining spot volume may traditionally be viewed as a sign of reduced investor interest or weak momentum, Darkfost interprets it differently in the context of a market correction.

He suggests that a decline in spot volume during a downtrend can act as a stabilizing force, potentially reducing the likelihood of sharp volatility spikes caused by large sell orders.

Lower volume during a corrective phase could mean that sellers are exhausting their positions or stepping aside, creating conditions for price consolidation. This can ease the intensity of downward pressure and potentially pave the way for a more balanced market structure in the short term.

However, Darkfost was cautious in his interpretation, noting that cooling volume doesn’t necessarily mean the market has bottomed out. Instead, it could simply mark a temporary pause in volatility before the next move.

Long-Term Holders Increase Exposure Despite Unrealized Losses

Meanwhile, in a separate update, CryptoQuant analyst Carmelo Alemán explored Ethereum’s long-term holder behavior and revealed that many ETH investors continue to accumulate, even while sitting in unrealized losses.

Accumulation addresses, defined as wallets that consistently receive ETH without significant selling, are generally seen as strong hands with longer investment horizons.

According to Alemán, March 10 marked a pivotal moment when the average realized price of accumulation addresses fell below ETH’s market price, pushing these wallets into negative territory.

Despite this, the data shows that accumulating addresses have increased their balances by over 22% between March and early May, growing from 15.5 million ETH to 19 million ETH.

This behavior reflects strong conviction and suggests that long-term holders believe Ethereum is undervalued at current prices. Historically, such accumulation during downturns has preceded upward price movements, as reduced supply on the market creates favorable conditions for a rally when demand returns.

Featured image created with DALL-E, Chart from TradingView

A crypto strategist who continues to grow a following with timely Bitcoin calls believes that BTC’s bull market is far from over despite the prevailing bearish sentiment.

Pseudonymous analyst Credible tells his 467,000 followers on the social media platform X that he’s keeping a close watch on the activities of long-term holders (LTHs) of BTC, which are entities holding coins for at least 155 days.

According to Credible, there are signs that LTHs are now gobbling up the crypto king after unloading their BTC stacks for months.

“It’s been three to four months since the last post I made on long-term holder supply, in which I showed that long-term holders had been net distributing on the rise from $68,000-$110,000 BTC.

This distribution almost always occurs during impulsive price action as long-term holders sell into pumps. This is normal/expected in bull markets. We can see that the selling continued aggressively into $110,000 but then began to slow (but continued) into March.

As of April, LTHs have officially begun accumulating BTC once more.

For the last seven months, long-term holders sold into the rip.

Now, they’re buying the dip.”

As long-term holders take advantage of the market correction, Credible believes that Bitcoin is now gearing up for a rally that could send BTC to new all-time high levels before ending its bull cycle.

“On something like BTC, however, the time to buy spot was much, much lower. Sure, we can go higher this cycle, but upside this cycle is relatively limited (and by that I mean 2-3x from current Ievels) if the top isn’t already in (I don’t believe it is personally).

Best risk/reward level for swing longs (a trade) on BTC is at high time frame demand at $69,000-$74,000 (which we may or may not get).” 

But in the short term, Credible predicts that Bitcoin will spark one more leg up before witnessing another downswing.

“Liquidity taken from the upside and approaching the first area of interest at $86,000+”

At time of writing, Bitcoin is trading for $87,377.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A crypto analyst says deep-pocketed investors are snapping up the top layer-1 platform Ethereum (ETH) amid the marketwide digital asset correction.

Trader Ali Martinez tells his 132,900 followers on the social media platform X that whales gobbled up more than $815.514 million worth of ETH in less than a week.

“Whales have bought more than 420,000 Ethereum ETH in [five days]!”

Martinez is also keeping a close watch on Ethereum’s In/Out of the Money Around Price (IOMAP) metric – which classifies crypto addresses as either profiting, breaking even, or losing money – to determine support and resistance levels for ETH.

According to Martinez, ETH is currently trading in a narrow range between stiff support and resistance zones.

“Ethereum ETH key levels to watch! On-chain data reveals $1,870 as the strongest support and $2,050 as its toughest resistance!”

At time of writing, ETH is trading for $1,941.

Turning to Bitcoin (BTC), the trader believes that the crypto king is poised to witness tactical rallies after breaching the horizontal resistance of an ascending triangle pattern.

“Bitcoin BTC is breaking out! The target is $90,000 as long as the $84,000 support holds.”

An ascending triangle pattern may be considered a bullish reversal structure if the asset soars above its horizontal resistance.

At time of writing, Bitcoin is trading for $84,288.

Turning to Ethereum rival Cardano, the analyst predicts rallies for ADA if the altcoin takes out the diagonal resistance of a triangle pattern at around $0.75.

“Cardano ADA is about to break free! Busting out of this triangle will trigger a 15% price move.”

A triangle is typically viewed as a consolidation pattern as it signals a potential breakout in either direction. The asset is considered bullish if the price moves above the diagonal resistance and bearish if it tumbles below the diagonal trend line.

At time of writing, ADA is worth $0.744.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney