Ethereum Holders Accumulate Over 4 Million Plus ETH Amid 2022 Price Dips

Several Ethereum (ETH) holders are taking advantage of the recent market dip to increase their positions in the second-largest cryptocurrency by market capitalization. 

Data provided by IntoTheBlock today suggests that Ethereum users have amassed over 4 million units of ETH throughout the year. 

According to IntoTheBlock, following the crash of ETH below $2,300 in January 2022, holders saw the dip as the perfect opportunity to add more of the cryptocurrency to their respective portfolios. 

On-chain activity for Ethereum shows that long-term holders sold two million ETHs in November 2021 after the coin’s price failed to hit $5,000 on several occasions. 

Hodlers Accumulate 4M+ $ETH in 2022

– In November hodlers appeared to unload 2 million ETH after it failed to reach the $5,000 level, marking the most recent top
– Then in mid-January hodlers' balance grew significantly as ETH's price crashed to $2,200https://t.co/9d3cm20mbL pic.twitter.com/NwAfT7dyMj

— IntoTheBlock (@intotheblock) February 18, 2022

Interestingly, with the price of ETH dipping consecutively, holders swung into action and doubled the amount they had unloaded in an impressive accumulation spree.  

While Ethereum is not the only digital currency that has suffered a major decline in value since the start of the year, the cryptocurrency has endured a terrible bearish market this year. 

Per data on Coingecko, a unit of Ethereum was trading around $3,600 on January 1, 2022. 

However, toward the end of January when the Federal Reserve had its meeting that will see interest rates increased to curtail the growing inflation in the United States, the price of ETH dropped to $2,200. 

Earlier today, ETH fell nearly 7% from $3,126 amid rising tension between Russia and Ukraine, as well as Fed’s proposed plans to increase interest rates in March. 

Increased User Activity in Ethereum 

ETH prices have continued to be highly volatile ever since, as traders have been forced to either convert their holdings to stablecoins or accumulate more Ethereum during price dips. 

Following the massive accumulation of Ethereum, recent reports suggest that more addresses are in profit holding ETH than the world’s largest cryptocurrency, Bitcoin (BTC). 

Meanwhile, user activity on Ethereum has also recorded significant growth in recent times, as over 1.5 million addresses are added to the network monthly.