The accumulation of Ether (ETH), the Ethereum cryptocurrency, has been rising for several years. However, questions are beginning to arise about the sustainability of this system.
This is stated in a report by an analyst known as Kripto Mevsibi, based on on-chain data from the CryptoQuant explorer. analysis Based on realized price of accumulator address.
This metric tracks the average base cost of addresses that continually accumulate Ethereum cryptocurrency. These are participants who prioritize the long term. They don’t try to make short-term moves.
This way, the indicator does not show maximum or minimum values. Also, momentum of price. Instead, they will be able to observe “where long-term participants are looking to increase their exposure,” the analyst says.
According to historical data, starting in 2020, this cost base will be showing a sustained upward trend. Cryptocurrency prices also plummeted during the 2022 and 2023 crashes. Still, accumulated costs remained largely the same.
This action suggests that “long-term holders did not capitulate,” Krypto Mevsibi clarified. In other words, they didn’t sell in large quantities During a bear market. As seen below, the graph shows the stability of convictions for these actors.
ETH is above the actual accumulator price
the current, Realized prices remain stable in the $2,700 to $2,800 range (USD). For analysts, this forms a “structural cost zone for Ethereum.”
This level serves as an important reference for the market while trading at higher levels. According to a report from CriptoNoticias, the price of ETH reached a nearly one-month high of $3,300 this week.
But he points out that the main question has changed. It’s no longer just a question of whether we can maintain this level.. The current focus is on whether this accumulation regime can be sustained indefinitely.
To understand this, he compares it to cryptocurrencies in general. As of 2022, “the broader altcoin market (cryptocurrencies excluding Bitcoin) tells a very different story.” Many alternative networks have suffered severe failures. Most failed to build a solid accumulation base.
According to the analysis, this phenomenon is explained by the “lack of sustained long-term accumulation.” Because of this, “the waterfall became even deeper.” Additionally, “recovery is slowing” in many sectors.
Two possible scenarios for ETH
Historically, the cost of accumulating ether has “withstood multiple stress tests.” Analysts are talking about 2018, 2020, 2022, and even 2025. introduce warnings: “The market evolves.”
In this sense, it would not be surprising if ETH behaved differently than it has in the past. Furthermore, “regime changes typically occur when assumptions appear to be more stable.”Therefore, there are two implications going forward.
The first is the possibility of “structural strength.” As long as ETH price remains near or above this zone, “long-term accumulation remains active.” This makes the asset more resilient against other cryptocurrencies.
The second is “systemic risk.” Continuing to remain below this standard “will indicate a change in behavior.”.
In this context, Crypto Mevsibi concludes that “price fluctuations are attracting attention.” However, on-chain data may indicate deeper signals regarding the state of the Ethercycle.
(Tag translation) Altcoin
