Ethereum Whales Accumulate as Dormancy Hits Lows Amid Fed Tensions

• ETH dormancy flow shows holders are not selling despite market pressure.
• Long-term investors increase holdings, signaling a strong belief in recovery.

Ethereum’s June price action revealed a clear divergence between market movement and investor behavior. Data from CryptoQuant shows a consistent increase in Ethereum accumulation throughout June. 

While ETH prices moved sideways or slightly declined, accumulation addresses, shown by rising blue bars, saw growing volumes. This trend intensified late in the month, even as prices remained stable.

CryptoQuant analysts interpret this as a sign of conviction among experienced holders. Historically, long-term investors increase their positions during price consolidation, often ahead of market recoveries.

Dormancy Drop Highlights Strong Holding Behavior

Glassnode reported that Ethereum’s Dormancy Flow has reached its lowest level in years. Dormancy Flow tracks the average age of coins being moved, with lower values indicating fewer long-held coins entering circulation. This typically signals low selling pressure and increased holding behavior.

According to analysts, this trend reflects long-term investor confidence. With fewer coins moving, selling activity has slowed, suggesting that investors are waiting for higher prices. Past cycles show similar dormancy patterns during accumulation phases, often leading into bullish reversals.

Trump Targets Fed Chair Ahead of Policy Forum

Federal Reserve Chair Jerome Powell will speak on July 1 at a key global monetary forum. His appearance comes amid renewed criticism from former President Donald Trump, who attacked Powell’s interest rate policy during a June 29 interview.

Trump argued that rates should fall to 1–2%, calling the current 4.25% to 4.5% range “artificially high.” He also labeled Powell “a stupid person” and vowed to oppose any nominee unwilling to cut rates. Treasury Secretary Scott Bessent suggested a new nomination could come by October, despite Powell’s term running through May.

The escalating political pressure adds uncertainty to future rate decisions. Any shift in Fed policy could directly impact crypto markets, including Ethereum, as investors respond to changes in liquidity and risk sentiment.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.