Ethereum Sees Historic Accumulation Despite Market Sell-Off

In a steep sell-off that gripped the crypto market due to macroeconomic concerns, Ethereum (ETH) briefly fell below $3,900 before marginally recovering. The asset was still down more than 2% over a 24-hour period, with the Crypto Fear & Greed Index indicating that ‘fear’ was the dominant market sentiment. However, fresh analysis from the on-chain analytics firm CryptoQuant reveals a powerful counter-narrative unfolding beneath the surface. The data points to a historic surge in accumulation, where long-term holders are increasing their positions significantly despite the price weakness.

CryptoQuant’s data shows that accumulator addresses—wallets that have made at least two purchases without a single sale—are absorbing ETH at impressive levels. On September 24th alone, nearly 400,000 ETH flowed into these wallets. This substantial inflow came on the heels of a record-breaking 1.2 million ETH accumulation less than a week prior. CryptoQuant explained that this figure represents the first time such massive, sustained inflows have been recorded, depicting a strong conviction among long-term holders. The firm suggested that some of these wallets may belong to institutional players or entities connected to the growing demand for spot Ethereum exchange-traded funds (ETFs).

Against this backdrop of heavy accumulation, technical analysts are closely watching key price levels. Analyst Ted Pillows noted that Ethereum testing the $3,800 liquidity level was an anticipated move. While the crypto has since bounced back, it remains below the crucial $4,060 support region. According to his analysis, reclaiming this support level could trigger a fresh rally and point to renewed bullish momentum. Conversely, a failure to hold above $4,060 increases the probability of a downside move, potentially pushing prices toward the $3,600 level.

Arthur Azizov, Founder and Investor at B2 Ventures, provided further context in a statement to CryptoPotato. He described the latest decline as a classic ‘risk-off squeeze,’ where ‘leverage is shrinking, liquidity is thinning, and short-term players step back.’ Azizov pointed out that even as Ethereum’s fundamentals—such as staking demand, DeFi use, and Layer 2 growth—remain solid, macro headlines are currently outweighing on-chain strength. He outlined three potential paths for the asset: a rebound to the $4,500-$5,000 range if the Federal Reserve’s tone turns dovish and shutdown risks disappear; a more likely scenario of temporary consolidation within the $3,500-$4,500 band until flows stabilize; or a continued downtrend if negative macro conditions persist.

Despite the sell-off, several other market experts have leaned bullish. Trader Tardigrade stated that ‘Ethereum is gathering momentum for an upcoming massive surge,’ expressing confidence in a future price appreciation. Michaël van de Poppe, founder of MN Fund and a well-known crypto analyst, offered a similarly optimistic technical perspective. He stated that Ethereum is now in an ‘ideal zone’ for accumulation, representing a higher timeframe support test that is important for long-term buyers to consider.

Van de Poppe added that the altcoin is also approaching its 20-week moving average, which has historically acted as a strong support point in previous cycles. This confluence of technical factors, combined with the aggressive buying from accumulator addresses, suggests that seasoned investors see current price levels as a strategic entry point. The divergence between short-term price action driven by macroeconomic fear and the long-term accumulation by confident holders paints a complex picture of a market at a potential inflection point.