- Ethereum accumulation addresses hit a record 330,705 ETH inflow in a day.
- Institutional and retail investors are buying ETH despite its price dip.
- Ethereum faces competition from Solana but could reach $4,000 with adaptation.
Ethereum accumulation addresses recorded their highest daily inflow on February 7. Data from CryptoQuant showed these wallets received 330,705 ETH worth $883 million. This surge pushed the total ETH held by long-term investors to 19.24 million.
These accumulation addresses belong to entities that continuously receive ETH without making outgoing transactions. They could be institutional investors or long-term holders betting on Ethereum’s future. Historically, large inflows into these wallets have preceded price rallies.
Ethereum ETF Inflows and Growing Retail Accumulation
Ethereum spot exchange-traded funds (ETFs) in the U.S. are also experiencing significant inflows. These inflows have returned to levels seen in November 2024. At that time, Donald Trump’s re-election fueled optimism in the crypto market.
Data shows that regular investors continue to buy Ethereum when prices drop to multi-week lows. On-chain data indicates whale addresses are steadily increasing their ownership of Ethereum tokens within the 10,000 to 100,000 ETH range. Data suggests Ethereum holders anticipate continued growth despite market value reductions.
Market Analysts Predict Higher Ethereum Prices
CryptoQuant analyst MAC_D believes these large inflows signal expectations of favorable regulatory changes. Many investors see Trump’s policies as supportive of decentralized finance (DeFi). This suggests that institutional players are accumulating ETH regardless of price trends.
Market analysts also view Ethereum as an attractive buy at current levels. Abra CEO Bill Barhydt expects ETH to reach $16,000 during Trump’s presidency. Another analyst, Coinvo, sees Ethereum’s accumulation as a clear buying opportunity.
Challenges Ethereum Faces on Its Path to $4,000
Despite strong accumulation, Ethereum still struggles to gain momentum. The ETH/BTC pair has dropped by 75% since 2021. This shows Bitcoin has outperformed Ethereum over the past few years.
Ethereum is also facing increased competition from Solana. Solana’s adoption in DeFi and NFTs has grown rapidly. This has caused the SOL/ETH trading pair to rise by over 1,000% since its 2022 low.
Ethereum’s Supply Growth and Future Outlook
Ethereum’s transition to proof-of-stake (PoS) was expected to reduce supply. However, ETH’s supply growth rate remains near zero. This suggests the deflationary impact of the Merge has stalled.
Nansen analyst Aurelie Barthere believes Ethereum can reach $4,000 and beyond. For this to happen, Ethereum must adapt to rising competition from other blockchains. It must also capitalize on favorable regulatory momentum to sustain long-term growth.
