ETH Accumulation Addresses

Definition ∞ ETH accumulation addresses are blockchain wallets that consistently receive and hold Ethereum without significant outgoing transactions, indicating a long-term holding strategy. These addresses typically exhibit a pattern of increasing ETH balances over time, suggesting a strong conviction in Ethereum’s future value. Monitoring these addresses provides insight into the long-term sentiment of a segment of the investor base. This behavior contrasts with addresses involved in active trading.
Context ∞ Analysts and crypto news outlets frequently cite the number and activity of ETH accumulation addresses as a key on-chain metric for assessing market strength. A rising trend in these addresses can signal bullish sentiment and a reduction in circulating supply, potentially supporting future price increases. Observing these addresses helps in understanding the underlying demand dynamics for Ethereum. This offers predictive value.