Ethereum’s Entity-Adjusted Dormancy Flow has just dropped below one million, indicating a period of long-term holders quietly accumulating. In the last two days, over 640k ETH moved to wallets that have never sold. This dramatic movement reflects a firm belief by these holders. This largely unwarranted accumulation trend happens in the background of a 9% drop in trading volume, which has now dropped down to $15 billion.

Ethereum's Dormancy Flow

Ethereum’s Dormancy Flow falling under one million suggests that ETH long-term holders are in an accumulation mode. The long term holders net position of Ethereum is something we consider the primary metric of long-term conviction of holders.

With Ethereum’s fundamentals evolving rapidly and the price under pressure, the silent hands might be signaling something the market is not yet pricing in - OnChainSchool

In addition to NFT activity, other activity across the Ethereum network is increasingly surging. Ethereum’s recent transition to proof-of-stake and growing Layer 2 adoption are the technical developments that are strengthening Ethereum’s network effects.

If this accumulation phase persists and if technical indicators continue to look promising, we could see a robust bullish trend evolve. Ethereum breakout could see Ether soar to $8,000 – if confirmed.

Market Analysis and Predictions

Further, some analysts are already predicting that Ethereum will reach a new all-time high by the end of 2025. One analyst is predicting Ethereum to skyrocket all the way to $6,000 before the end of the year.

A trader known as Bitcoinsensus tweeted that on Ethereum’s monthly chart a bull flag formation is currently in development. Historically, this is a solid signal according to crypto analyst, Ali Martinez who pointed out this bullish indication.

Overall sentiments for Ethereum are extremely positive and optimistic. Indeed, many experts have predicted the cryptocurrency will keep climbing high as we head into the latter half of 2025.

Long-Term Holder Behavior

Conviction among Ethereum holders who never plan to sell is sky-high, as shown by their massive accumulation. More than 640K ETH has been moved into wallets that have never sold in the last two days.

The increase in ETH held by long-term holders is an important gauge of long-term holder conviction. This behavior, as weird as it sounds, indicates an unwavering faith in the future value and potential of Ethereum.