Is Ethereum Near a Cycle Low? New Metric Points to Accumulation Phase
Ethereum may be trading below its true value right now, according to a new market signal catching the attention of crypto analyst Ali Martinez.
In a recent post, Martinez pointed to a key on-chain metric—known as the Entity-Adjusted Dormancy Flow—that just dropped beneath the one million mark, a level historically tied to long-term market bottoms.
This metric, often used to gauge whether an asset is oversold, reflects a combination of low investor activity and increased holding behavior. Essentially, when coins are dormant and market cap remains high, it may suggest that most holders are choosing not to sell—typically a sign of confidence among long-term investors.
Martinez interprets this drop as a potential sign that Ethereum has reached a major accumulation phase. He suggests it signals weak market sentiment, possible capitulation, and buying activity from more strategic players—commonly referred to as smart money.
Supporting this outlook, Martinez also noted that nearly half a million ETH—roughly 453,000 coins—have been pulled from centralized exchanges over the past five days. Large withdrawals like these are often seen as bullish, implying that investors intend to hold their ETH rather than trade or sell it in the short term.
Dormancy Flow, a metric tracked by analytics firm Glassnode, helps investors identify macro trends by comparing a coin’s market cap to how long those coins remain inactive. When that flow dips sharply, it often aligns with price bottoms and signals that the market may be preparing for a long-term shift upward.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
