Analysts highlight a potential multi-year growth phase as Ethereum approaches key accumulation levels
Ethereum is entering a critical phase that some analysts believe mirrors Bitcoin’s early supercycle — the long expansion period that helped Bitcoin multiply in value over the past decade. Recent market data shows Ether approaching the buy-in levels of long-term holders, while industry analysts argue that current volatility is masking strong future potential. This convergence of technical and behavioral signals is fueling speculation that Ethereum may be preparing for a significant multi-year growth run.
Ethereum Shows Early Signs of a New Supercycle
Tom Lee, executive chair of digital asset firm BitMine, says Ethereum is “embarking on the same supercycle” that helped Bitcoin grow from roughly $1,000 in 2017 to over 100 times that value in later years.
According to Lee, the market’s recent drawdowns are consistent with early-cycle behavior. “To have gained from that 100x supercycle, one had to stomach existential moments to HODL,” he wrote, noting that doubt-driven volatility has historically preceded major expansions.
Ethereum recently reached an all-time high of $4,946 in August before retracing more than 35% amid broader market contraction. Bitcoin similarly pulled back about 25% from its peak above $126,000. Despite the drop, analysts argue that the structure of the market remains intact.
On-Chain Data Shows ETH Nearing Key Long-Term Accumulation Zone
A new analysis from CryptoQuant contributor Burak Kesmeci highlights a critical technical development: Ether’s current price near $3,150 is approaching the average cost basis of long-term holders — a metric that reflects where patient accumulators historically enter the market.
Kesmeci noted that ETH is “only around $200 away” from this level and has dipped below it just once in recent history, during April’s market shock when U.S. tariffs took effect.
He emphasized that Ethereum falling below $2,900 has historically created one of the strongest long-term accumulation opportunities, as the price rarely stays beneath this threshold.
This year alone, more than 17 million ETH has flowed into accumulation addresses, pushing long-term holdings from 10 million to 27 million ETH, a substantial rise that signals increasing conviction among strategic buyers.
While short-term volatility continues, analysts argue that Ethereum’s long-term setup is strengthening. With rising accumulation, approaching cost-basis levels, and early-cycle indicators aligning, Ethereum may be entering the early stages of a new long-term supercycle. Industry observers warn that the period ahead could require patience — but historically, such conditions have preceded significant expansions
The coming months may determine whether Ethereum truly repeats Bitcoin’s long-term supercycle trajectory.
Disclaimer
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