Key Points
- 1.11M ETH flowed into accumulation addresses, the largest weekly inflow in 2025.
- Funding rates drop to neutral levels, mirroring 2024’s pre-rally accumulation phase.
- Active addresses surge as price tests $1,800 resistance.
Ethereum (ETH) is showing mixed on-chain signals that point to long-term bullish accumulation while facing short-term resistance at $1,800. While many traders are booking profits, key indicators suggest that long-term holders may be preparing for the next leg higher.
What Are Accumulation Addresses?
Accumulation addresses are wallets that have never moved funds after receiving them. A spike in ETH flowing into these wallets often suggests growing confidence among long-term holders. Between April 17–23, over 1.11 million ETH were deposited into such wallets, the largest weekly total in 2025 so far.
Declining Exchange Netflows Reflect Short-Term Selling
On April 24, exchanges recorded net inflows of 178,900 ETH ($317 million). Exchange netflows show the difference between ETH going in and out of centralized exchanges. A positive inflow often means more ETH is being positioned to sell. This suggests that some traders are locking in profits following the price rally.
Active Address Count Supports Bullish Sentiment
ETH’s active addresses surged to over 370,000 on April 23 as it approached the $1,800 resistance level. This uptick signals renewed trader engagement, which often precedes volatility. However, the count later declined back to 340,000, suggesting a temporary cooldown.
Funding Rates Near Neutral: Smart Money Watching
Funding rates – indicate the cost of holding long or short futures, which have dropped to near zero across major exchanges. This pattern mirrors the consolidation seen before Ethereum’s late 2024 breakout. Neutral rates generally reflect balanced sentiment and “smart money” accumulation.
Velocity Drops & Reserves Rises
Ethereum’s velocity has jumped to 7.7, indicating more ETH is changing hands, usually a sign of increased trading or DeFi activity.
However, DeFi activity is actually cooling down, with decentralized exchange (DEX) volumes falling from $82.2 billion in January to $48.8 billion in March, according to DefiLlama. This means the higher velocity may be driven more by short-term trading than long-term DeFi growth.
Meanwhile, exchange reserves have risen to 19.6 million ETH, meaning more ETH is sitting on exchanges and potentially ready to be sold.
Conclusion: Long-Term Bullish, Short-Term Resistance
Ethereum appears to be in a smart money accumulation phase. The increasing inflows to inactive wallets and funding rate neutrality all point to long-term bullish behavior. However, near-term resistance at $1,800 and profit-taking behavior highlight the potential for short-term pullbacks.
For investors and traders, this divergence presents opportunity and caution alike: a possible bottom formation is in play, but reclaiming $1,800 with conviction will be key to unlocking Ethereum’s next rally toward $2,000 and beyond.
