Ether’s rally to about $2,400 sits roughly 38% above its swing low near $1,750. The question is whether this move is short-term momentum or supported by longer-term on-chain trends.
ETH accumulation addresses absorb 6.5 million Ether
Daily active addresses jumped 89%, from 384,763 on April 5 to 730,278, signaling a notable uptick in network interaction. Similar surges in activity have historically appeared near macro bottoms and preceded major ETH rallies.
Daily inflows to accumulation addresses have risen since mid-2025, peaking at 1.14 million ETH in November 2025. In 2026 inflows averaged about 200,000 ETH per day, with a one-day spike above 358,000 ETH. The balance held in accumulation wallets — addresses with no history of selling — climbed by 6.5 million ETH, from 19.64 million on Jan. 1 to 26.16 million, a 33% increase. This metric is widely watched as an indicator of confidence in Ether’s long-term outlook.
Staked ETH supply has also grown, now around 39.2 million ETH, reinforcing investor commitment to holding. At the same time, Ether balances on exchanges have dropped to multi-year lows, tightening liquidity available on order books.
Cup-and-handle breakout targets and technical view
Technically, ETH/USD appears to have broken a cup-and-handle pattern. A 12-hour candlestick close above the cup’s neckline near $2,400 would suggest a stronger uptrend, with a measured target by adding the cup’s depth at roughly $2,960 (about 22% above current levels). The relative strength index has risen to about 68, indicating bulls are in control but approaching overbought territory.
A larger daily cup-and-handle observed by trader TheSkayeth points to an even bigger target near $3,150 (around 30% from current prices). For bulls to sustain a breakout, holding the $2,350–$2,400 zone will be important. A confirmed close above $2,400 could increase the odds of moves toward $2,800 and later $3,050.
Summary
On-chain metrics — rising active addresses, sustained inflows into accumulation wallets, growing staked supply, and shrinking exchange reserves — align with a bullish narrative for ETH. Technical patterns point to upside targets near $2,960–$3,150 if key levels hold and breakouts confirm. However, momentum indicators show strength that warrants caution for short-term overextension.
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