- Institutions withdrew 89K ETH as Stock-to-Flow surged to 69.66, indicating rising scarcity.
- Despite a drop in Open Interest, MVRV and transaction recovery show improving fundamentals.
Ethereum [ETH] has seen over 89,000 ETH worth $230 million withdrawn by institutional wallets from Binance, OKX, and Kraken within just 24 hours.
These aggressive outflows—linked to Matrixport and Abraxas Capital—signal rising institutional confidence and a strategic shift toward long-term holding
This shift also reflects broader institutional confidence in Ethereum’s future potential, especially during periods of market uncertainty.
With sell-side pressure decreasing and supply tightening, these strategic withdrawals could play a critical role in shaping Ethereum’s price trajectory over the coming weeks.
Will ETH’s support trendline hold against mounting resistance?
Ethereum continues to trade above an ascending support line, signaling that buyers still defend key levels.
However, price action remains capped below the $2,642 resistance, with further upside limited by a stronger ceiling at $2,885.
This consolidation between trendline support and horizontal resistance suggests indecision. At press time, RSI hovered around 55, indicating neutral momentum.
Therefore, while bullish structure remained intact, ETH must break through this resistance band to confirm continuation.
Failure to do so could lead to a retest of the $2,403 zone if bulls lose control.
Source: TradingView
ETH’s Stock-to-Flow soars: Is scarcity setting the stage for gains?
The Stock-to-Flow (S2F) ratio for Ethereum has spiked to 69.66, a significant leap that reflects increasing scarcity. This metric compares circulating supply to annual issuance, and rising values suggest limited availability of new ETH.
Such a dynamic often supports bullish expectations, especially during accumulation phases. Therefore, this surge may signal growing demand amid declining supply, reinforcing Ethereum’s long-term value proposition.
However, price action must align with this narrative for gains to materialize, particularly in the face of short-term resistance zones.
Low MVRV Z-score: A hidden bullish signal?
Ethereum’s MVRV Z-score remains negative at -0.037, indicating that most holders are not in significant profit. Historically, negative MVRV zones have preceded rallies, as there’s little incentive to sell.
This suggests the market may be undervalued, or at least in a healthy reaccumulation phase. Therefore, this metric offers a bullish undertone, implying reduced profit-taking pressure.
If combined with institutional support and improving on-chain metrics, this could provide a solid base for ETH to attempt a breakout above its multi-week range.
On-chain activity rebounds: Is Ethereum regaining momentum?
Ethereum’s transaction count recently bounced to 1.45 million after a late-June decline, pointing to recovering network engagement. Increased activity often correlates with stronger user participation, which supports long-term sustainability.
Therefore, this rebound adds to ETH’s bullish case, especially if demand continues to rise alongside investor confidence.
Still, consistency in on-chain interactions will be crucial to reinforce this recovery. If sustained, the revival in usage could support price strength and attract further institutional attention.
Are traders losing interest in Ethereum derivatives?
Derivatives activity around ETH has declined, with trading volume down 21.89% and Open Interest sliding 1.56%. This pullback suggests traders are exercising caution, possibly due to ETH’s struggle below resistance.
While lower Open Interest reduces the risk of forced liquidations, it also signals reduced speculative momentum.
Therefore, the decline in derivatives data may limit ETH’s short-term volatility, allowing for more organic price development. If spot demand increases while leverage stays low, Ethereum’s moves could become more stable and sustainable.
Can ETH’s silent accumulation spark the next breakout?
Ethereum’s current landscape shows strong institutional interest and growing scarcity, yet price remains capped below resistance.
While declining derivatives activity suggests reduced speculative pressure, the technical and on-chain metrics point toward a potential upward breakout.
Therefore, ETH could soon test and possibly breach its resistance, provided momentum aligns with demand.
