In a steep sell-off that gripped the crypto market due to macroeconomic concerns, Ethereum (ETH) briefly fell below $3,900 before marginally recovering above this level.

While it is still down by more than 2% over the past day, fresh analysis from CryptoQuant reveals that it is witnessing a historic surge in accumulation.

Long-Term ETH Holders Increase Positions

Data shows that accumulator addresses, which happen to be wallets that have made at least two purchases without a single sale, are absorbing ETH at impressive levels. Nearly 400,000 ETH flowed into these wallets on September 24th alone, following a record-breaking 1.2 million ETH less than a week ago.

This figure represents the first time such massive inflows have been recorded and depicts a strong long-term holder behavior. CryptoQuant explained that some of these wallets may belong to institutional players or entities connected to ETH exchange-traded funds (ETFs), which have seen growing demand.

Crypto Fear Greed Index shows that fear is driving the sentiment, but analyst Ted Pillows said that Ethereum testing the $3,800 liquidity level was already predicted. The crypto has since bounced back but remains below the crucial $4,060 support region. According to his analysis, reclaiming this support level could trigger a fresh rally and point to a renewed bullish momentum.

However, if it fails to hold above $4,060, the probability of a downside move also increases. Such a break could push prices toward $3,600.

In a statement to CryptoPotato, Arthur Azizov, Founder and Investor at B2 Ventures, said that the latest decline is a classic risk-off squeeze: leverage is shrinking, liquidity is thinning, and short-term players step back. Even as Ethereums fundamentals, such as staking demand, DeFi use, and Layer 2 growth, are still solid, macro headlines outweigh on-chain strength. Azizov went on to add that the asset has three paths

If the Feds tone remains dovish and shutdown risks disappear, ETH could easily rebound to the $4,500-$5,000 range. More likely is the temporary consolidation in the $3,500-$4,500 band until flows stabilize.

Market Experts Remain Bullish

Several other market experts have also leaned bullish despite the major setback. Trader Tardigrade also said that Ethereum is gathering momentum for an upcoming massive surge.

Meanwhile, Michaël van de Poppe, founder of MN Fund and a well-known crypto analyst, further stated that Ethereum is now in an ideal zone for accumulation. He added that this area represents a higher timeframe support test, which makes it an important level for long-term buyers to consider.

Additionally, the altcoin is also approaching its 20-week moving average, which has historically acted as a strong support point in previous cycles.