In recent days, Ethereum (ETH) has shown a steady bounce back, driven by positive sentiment across the market. This second largest electronic money in the world is currently trading near its highest levels in many months, but reaching the 5,000 USD mark may face obstacles due to the accumulation of investors still being weak.
The Ethereum accumulation is bouncing back
The accumulation ratio of holder ( is currently at 30%, significantly lower than the 50% threshold often seen as a sign of strong accumulation behavior. A ratio exceeding this threshold typically indicates that long-term investors are actively buying into ETH, reflecting confidence in sustainable growth.
History shows that the accumulation rate of Ethereum typically fluctuates between 40% and 45% during periods of stable price growth. Although the recent increase has been modest, it still indicates that market sentiment is gradually improving.
![This is the reason why ETH price is unlikely to rise to $5,000])https://img-cdn.gateio.im/webp-social/moments-ce3657d5b53d0fb9ea946276863ed3f6.webp(The accumulation rate of Ethereum holders | Source: GlassnodeThe Age Consumed ) of Ethereum has recorded two spikes this month, indicating a significant increase in the activity of long-term holders. This index measures when previously inactive coins start to move again, often signaling that long-term holders are making sell transactions. The continuous spike indicates that the confidence of long-term investors may be weakening.
Continuous selling actions from long-term investors often occur before short-term price corrections, when new supply is introduced into the market. If these rallies continue, Ethereum may face increasing resistance on its journey towards new highs.
Ethereum Consumption Age | Source: Santiment## ETH price is struggling
Currently, the price of Ethereum is at 4,020 USD, trading just below the important resistance level of 4,222 USD. A successful break of this level could pave the way for ETH to advance to 4,500 USD, attracting strong capital flows from both institutional and retail investors.
ETH price chart | Source: CoinphotonIf accumulation increases and confidence returns, Ethereum has the potential to reach $4,956 — the previous all-time high — and may hit the $5,000 mark. This would be a clear signal of the market bounce back and new upward momentum.
However, if bearish sentiment increases or long-term investors continue to liquidate their assets, Ethereum may slide below 4,000 USD. A deeper correction could pull prices down to 3,872 USD or lower, invalidating the bullish hypothesis and signaling new selling pressure in the market.
Mr. Teacher
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