Could a potential breakout be next for the world’s largest altcoin?
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Ethereum’s increasing buying volume may signal accumulation and a potential price surge.
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Historical trends suggest rising buying volumes during price declines lead to significant recoveries.
Ethereum’s price may be falling, but rising buying volumes indicate a potential market shift that could lead to a significant recovery.
Price drops paired with rising buying volumes
The data illustrated Ethereum’s taker buy volume – a metric tracking the volume of buy orders executed at market price – across all exchanges, overlaid with its 100-day simple moving average.
Despite Ethereum’s 11% price decline from $3,750 in early January to $3,350 at press time, taker buy volume rose sharply – a sign of growing market activity.
Source: Cryptoquant
This trend mirrors the May 2024 accumulation phase, highlighted on the chart. Back then, taker buy volume surged past its 100-day SMA during a price correction, preceding a sharp 27% rebound to $4,750. The same pattern might be visible now, with taker buy volume exceeding $4 billion as the SMA trends upwards.
Historically, such divergences between price and buying volumes indicate institutional accumulation or whale positioning. Could this mark the start of another accumulation-driven breakout for Ethereum?
Historical patterns
Ethereum’s historical price movements reveal a recurring pattern – price declines accompanied by rising buying volumes often precede significant surges. A notable instance occurred in December 2024, when Ethereum’s price fell to around $2,500. Despite this downturn, however, taker buy volume across exchanges increased, indicating accumulation by investors anticipating a rebound.
This accumulation phase culminated in a rally that saw the price climb to approximately $3,700 in early 2025.
Similarly, in May 2024, Ethereum noted a price drop, yet buying activity intensified, leading to a subsequent price surge. These patterns implied that rising buying volumes during price declines can serve as indicators of potential upward moves.
If this trend continues, it could signal an impending breakout, in line with historical precedents where a hike in buying interest during downturns has preceded significant price recoveries.
Read Ethereum (ETH) Price Prediction 2025-26
Ethereum’s short-term outlook
At press time, Ethereum’s weekly chart showed the price consolidating near $3,228 – just above the key support level of $3,000. The RSI was flashing neutral momentum without clear overbought or oversold conditions.
This hinted at indecision among market participants, but it also leaves some room for potential upside if buying pressure grows.
Source: TradingView
The OBV remained steady too, showing consistent accumulation rather than distribution. This seemed to be in line with the rising taker buy volumes noted previously, further alluding to accumulation by larger investors.
If Ethereum holds the $3,000-support, a rebound towards $3,500 – $3,600 appears plausible. However, failure to maintain this level could trigger a deeper correction to the $2,800 range, intensifying bearish sentiment.
Conclusion
In conclusion, while Ethereum currently faces downward price pressures, the notable increase in buying volume may indicate an important shift towards accumulation. Historical patterns support the potential for a bullish turnaround, urging investors to remain vigilant. As market dynamics continue to evolve, maintaining a close watch on key support levels like $3,000 will be critical for Ethereum’s performance in the near term.
