Ethereum (ETH ($3,985.05)) has shown a steady recovery over the past few days, fueled by improving sentiment across the broader crypto market. 

The world’s second-largest cryptocurrency is trading near multi-month highs, but its path to reclaiming the $5,000 mark could face resistance due to weak investor accumulation.

Ethereum Accumulation Is Recovering

The Holder Accumulation Ratio for Ethereum currently sits at 30%, well below the 50% threshold that typically signals strong accumulation behavior. A ratio above this mark often suggests that long-term investors are actively buying ETH, reflecting confidence in sustained growth

Historically, Ethereum’s accumulation ratio has tended to rise between 40% and 45% during periods of steady price increases. The recent uptick, while modest, does hint at gradually improving sentiment. 

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Ethereum Holder Accumulation Ratio. Source: Glassnode

Ethereum’s “Age Consumed” metric has spiked twice this month, indicating a notable increase in long-term holder activity. This on-chain metric measures when previously dormant coins begin moving again, often signaling that older holders are selling. Repeated spikes suggest that confidence among long-term investors may be weakening.

Consistent selling from long-term holders typically precedes short-term price corrections, as it introduces new supply into the market. If these spikes persist, Ethereum could face mounting resistance on its climb toward new highs. 

Ethereum Age Consumed. Source: Santiment

ETH Price Is Struggling To Rise

Ethereum is currently priced at $4,147, trading just below the key $4,222 resistance level. A successful breach of this barrier could enable ETH to climb toward $4,500. This would attract stronger inflows from institutional and retail investors alike.

If accumulation strengthens and confidence returns, Ethereum could advance toward $4,956 — its previous all-time high — and potentially touch $5,000. This would represent a decisive signal of market recovery and renewed bullish momentum.

ETH Price Analysis. Source: TradingView

However, if bearish sentiment grows or long-term holders continue offloading their holdings, Ethereum could slip below $4,000. A deeper correction could pull the price down to $3,872 or lower, invalidating the bullish thesis and signaling renewed selling pressure in the market.

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