Ethereum

Flow

April

mirror

<ul class="wp-block-list"><li>Ethereum’s dormancy flow drops below 1 million for the first time since 2022, signaling accumulation and long-term holder conviction.</li><li>Historically low dormancy levels in April 2025 mirror past cycle bottoms, hinting at capitulation and potential macro trend reversal.</li><li>Despite price fluctuations, long-held ETH remains unmoved, suggesting accumulation and renewed confidence among long-term investors.</li></ul><p>According to analyst Ali's <a href="https://x.com/ali_charts/status/1910639009153352172" rel="noopener noreferrer nofollow">analysis</a>, Ethereum’s Entity-Adjusted Dormancy Flow has dropped below 1 million for the first time since mid-2022, signaling a critical macro trend. As of April 10, 2025, the dormancy flow stood at 979,317 while ETH traded at <a href="https://coinmarketcap.com/currencies/ethereum/" rel="noopener noreferrer nofollow">$1,521.85</a>. Historically, such low dormancy levels have coincided with market bottoms, where long-term holders exhibit low spending behavior. This suggests Ethereum may currently be undervalued, and accumulation could be underway.</p><p>Besides that, the drop also reflects a <a href="https://cryptofrontnews.com/realized-cap-trends-reveal-bitcoins-shifting-investor-sentiment/" rel="noopener noreferrer nofollow">potential shift in investor sentiment</a>. Dormancy flow levels this low previously occurred in December 2018 and June 2022. On both occasions, ETH traded at major cycle lows of $84.32 and $993.84, respectively. Hence, the latest drop mirrors historical patterns and indicates that capitulation might already have occurred. Smart money could be quietly positioning for the next cycle.</p><h2 class="wp-block-heading" id="dormancy-flow-vs-price-action">Dormancy Flow vs Price Action</h2><p>From 2018 to 2025, Ethereum’s dormancy flow followed a descending trajectory with consistently lower highs and lower lows. Meanwhile, <a href="https://cryptofrontnews.com/ethereums-cyclical-moves-hint-at-early-stages-of-a-new-altcoin-rally/" rel="noopener noreferrer nofollow">ETH’s price moved in cyclical waves</a>. It peaked in early 2018, again in 2021, and once more in mid-2024. However, each time dormancy flow failed to reclaim previous highs, it suggested weakening conviction from long-term holders.</p><figure class="wp-block-image"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd_73HKf99wIm-eYxkdB2cDYplpuiAStHgeqa1keXJbJvZ0hw4SDJWD9tg6D8blVE0X3Cd4YHPzznGuC1DD3SiFZzBQq93fe9ev3JMg9TuIofZwGPpQcYq_EoDXJPmae73XWYmpCw?key=4T4LfICmKnRW7YsihKcOgrzs" alt=""><figcaption class="wp-element-caption"> Source: <a href="https://x.com/ali_charts/status/1910639009153352172" rel="noopener noreferrer nofollow">Ali</a></figcaption></figure><p>Moreover, in the bull run between 2020 and 2021, both metrics surged. ETH price and dormancy flow aligned, pointing to heightened on-chain activity. Conversely, from late 2021 onward, the trend reversed. While ETH's price briefly recovered in 2023 and early 2024, dormancy flow kept falling. This divergence highlighted that long-held coins remained largely unmoved despite rising valuations.</p><h2 class="wp-block-heading" id="long-term-sentiment-signals">Long-Term Sentiment Signals</h2><p>Additionally, dormancy flow acts as a sentiment gauge for long-term investors. High values typically reflect profit-taking or distribution phases. On the other hand, historically <a href="https://cryptofrontnews.com/ethereum-forecasts-bullish-trajectory-could-reach-12000-to-15000/" rel="noopener noreferrer nofollow">low values hint at accumulation</a> and subdued spending behavior. This current phase fits the latter profile, as fewer aged coins move despite price swings.</p><p>Consequently, the Ethereum on-chain pattern indicates that it may be in an accumulation zone. A more extensive corrective phase may be coming to a conclusion in the market. This trend foreshadows significant uptrends and mimics previous cycle lows.. While short-term volatility remains, the dormancy flow signals growing conviction among long-term holders.</p><p>The post <a href="https://cryptofrontnews.com/ethereum-dormancy-flow-hits-multi-year-low-signals-accumulation/" rel="noopener noreferrer nofollow">Ethereum Dormancy Flow Hits Multi-Year Low, Signals Accumulation</a> appears on <a href="https://cryptofrontnews.com" rel="noopener noreferrer nofollow">Crypto Front News</a>. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.</p>

Ethereum Dormancy Flow Hits Multi-Year Low, Signals Accumulation

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