Ethereum Slides for 6 Straight Months, but Institutions Keep Accumulating Below $2,000
Despite six straight months of decline, institutions like Tom Lee's Bitmine and K3 Capital are accumulating ETH below $2,000, coinciding with over 50% of the supply being staked.Summary
Ethereum (ETH) has experienced its sixth consecutive month of price decline, marking the longest losing streak since 2018. However, institutional investors are viewing prices below $2,000 as a buying opportunity. Notable accumulation occurred in the third week of February, with Tom Lee's Bitmine acquiring 35,000 ETH and K3 Capital purchasing 20,000 ETH from Binance, indicating strong long-term conviction.
This accumulation trend is supported by on-chain data showing the most active period of inflows into ETH accumulation addresses in history over the last six months. Furthermore, a significant milestone was reached as over 50% of the total ETH supply is now held in the Proof-of-Stake (PoS) contract, effectively locking it out of circulation. This reduction in liquid supply can decrease sell pressure, making the market more sensitive to new demand.
While some analysts suggest ETH could still drop to $1,385 in the short term amid negative sentiment, the sustained accumulation by large investors and institutions suggests positioning for a long-term recovery.
(Source：BeInCrypto)