- Ethereum long-term holders have increased their holdings by over 22% despite recent price weakness, reflecting strong conviction ahead of the Pectra upgrade.
- Ethereum also shows signs of a potential breakout, with tightening technical indicators, rising trading volume, and bullish positioning in the derivatives market.
Ethereum is drawing major attention from long-term investors and derivatives traders alike, with signs pointing to a potential price breakout. As the Pectra upgrade nears, the on-chain behavior of Ethereum whales suggests growing confidence in the asset’s medium-term upside.
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Long-Term Holders Accumulate Despite Market Weakness
Between March 10 and May 3, wallets classified as long-term holders increased their ETH holdings by over 22%, according to CryptoQuant data. These addresses—known for accumulating without major selling—grew their combined balance from 15.53 million to 19.03 million ETH. This surge occurred even as ETH traded below many holders’ average entry price, signaling that these investors are using the dip to lower their cost basis, which now sits at $1,980.
This strategy reflects structural conviction rather than panic. Ethereum has been on a downward trend since its December 2024 high of $4,107, yet these holders remain undeterred, holding coins for over 155 days and steadily increasing their positions.
Technical Indicators Point to a Tightening Price Range
Ethereum currently trades between $1,783 and $1,831. Technical signals suggest an impending move. The Bollinger Bands are narrowing—a classic prelude to volatility. Meanwhile, the RSI stands at 54.63, indicating a neutral market. With volume climbing steadily since mid-April and ETH hovering below a key resistance level at $1,941, traders are watching closely.
Analysts are also eyeing chart patterns. One analyst, known as Thecryptomist, has highlighted an ascending triangle pattern, noting $1,950 as the next target level should a breakout occur.
Derivatives Market Shows Bullish Bias
A sharp uptick in options activity further underlines the market’s growing anticipation. Options volume surged nearly 75% to $357.69 million. On exchanges like Binance and OKX, long positions now outnumber shorts more than 2 to 1. Even among top trader accounts, bullish sentiment is dominant.
Liquidation data adds to the story: although long positions have seen higher losses overall, the consistent liquidation of shorts suggests upward pressure.
All Eyes on Ethereum’s Pectra Upgrade
The upcoming Pectra upgrade on May 7 could be the catalyst for the next price move. By raising the validator staking limit from 32 ETH to 2,048 ETH and increasing the number of data blobs per block, the update aims to improve scalability and network efficiency.
With structural buying, bullish positioning, and a major upgrade on the horizon, Ethereum appears poised for a significant move—potentially upward.
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