Here’s Why Ethereum’s Price Keeps Hitting a Wall, According to the Data
On-chain data reveals a fundamental tug-of-war defining the Ethereum market. Even as a core group of long-term investors tightens its grip, accumulating a record amount of ETH, short-term traders appear ready to sell into any significant price rally.
This growing concentration of tokens among so-called “strong hands” now stands at 22.8 million ETH, signaling a deep and sustained conviction in the network’s long-term value despite years of price volatility.
A look back at the historical data shows a clear, multi-year trend of accumulation. Since 2017, the total balance held in these addresses has surged from under 5 million ETH to today’s record levels.
These wallets, known for their patient buying and holding behavior, have continued to build their positions through the major market peaks of 2018, 2021, and 2024, as well as the sharp corrections that followed.
The picture gets more complicated when looking at short-term market dynamics. Spot inflow data from late 2024 to mid-2025 shows that large spikes in ETH moving onto exchanges frequently line up with periods of price decline, suggesting traders are taking profits when prices rise.
For instance, early February 2025 saw inflows approach a massive $10 billion, a move that coincided with ETH’s price falling from approximately $3,000 to $2,500. Similar surges in November 2024 and May 2025 either preceded or occurred alongside price consolidation, while periods of reduced inflows corresponded with price stability and recovery.
Meanwhile, data on network health offers a look at the blockchain’s underlying usage. The number of active Ethereum addresses has varied with market events over the past few years, with higher user counts naturally aligning with the price rallies seen in late 2023 and early 2024.
Despite periods of price drops, however, the number of active addresses has remained relatively stable. This points to a resilient base of network participants who continue to engage with the ecosystem regardless of short-term market direction, demonstrating the blockchain’s persistent utility.
Looking at the most recent action, the market has shown renewed momentum. Over the last 24 hours, Ethereum’s price rose 7.2% to $2,429.18, pushing its market capitalization up by a similar margin to over $290 billion. Trading volume also jumped significantly to $27.8 billion, indicating strong liquidity.
The total and circulating supplies of the token have remained steady at approximately 120.71 million ETH, a figure consistent with Ethereum’s deflationary supply model.