• Ethereum’s increasing buying volume may signal accumulation and a potential price surge
• Historical trends suggest rising buying volumes during price declines lead to significant recoveries

Ethereum’s [ETH] price may be on a downtrend, but the rising buying volumes might be telling us a different story. As market activity increases despite the price drop, it mirrors patterns seen before significant price surges, such as the May 2024 spike.

Historically, higher buying volumes during a price decline often point to accumulation, hinting that investors could be gearing up for a potential breakout. Could this be the calm before a surge for Ethereum?

Price drops paired with rising buying volumes

The data illustrated Ethereum’s taker buy volume – a metric tracking the volume of buy orders executed at market price – across all exchanges, overlaid with its 100-day simple moving average.

Despite Ethereum’s 11% price decline from $3,750 in early January to $3,350 at press time, taker buy volume rose sharply – A sign of growing market activity.

This trend mirrors the May 2024 accumulation phase, highlighted on the chart. Back then, taker buy volume surged past its 100-day SMA during a price correction, preceding a sharp 27% rebound to $4,750. The same pattern might be visible now, with taker buy volume exceeding $4 billion as the SMA trends upwards.

Historically, such divergences between price and buying volumes indicate institutional accumulation or whale positioning. Could this mark the start of another accumulation-driven breakout for Ethereum?

Historical patterns

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Author: Samantha LKM

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