Ethereum’s price falls and sees red, but buying activity might say otherwise!

• 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

Ethereum’s historical price movements reveal a recurring pattern – Price declines accompanied by rising buying volumes often precede significant surges. A notable instance occurred in December 2024, when Ethereum’s price fell to around $2,500. Despite this downturn, however, taker buy volume across exchanges increased, indicating accumulation by investors anticipating a rebound.

This accumulation phase culminated in a rally that saw the price climb to approximately $3,700 in early 2025.

Similarly, in May 2024, Ethereum noted a price drop, yet buying activity intensified, leading to a subsequent price surge. These patterns implied that rising buying volumes during price declines can serve as indicators of potential upward moves. 

If this trend continues, it could signal an impending breakout. This would be in line with historical precedents where a hike in buying interest during downturns has preceded significant price recoveries.

Read Ethereum (ETH) Price Prediction 2025-26

Ethereum’s short-term outlook

At press time, Ethereum’s weekly chart showed the price consolidating near $3,228 – Just above the key support level of $3,000. The RSI was flashing neutral momentum without clear overbought or oversold conditions.

This hinted at indecision among market participants, but it also leaves some room for potential upside if buying pressure grows.

The OBV remained steady too, showing consistent accumulation rather than distribution. This seemed to be in line with the rising taker buy volumes noted previously, further alluding to accumulation by larger investors.

If Ethereum holds the $3,000-support, a rebound towards $3,500 – $3,600 appears plausible. However, failure to maintain this level could trigger a deeper correction to the $2,800 range, intensifying bearish sentiment.