- Ethereum’s exchange supply is falling as long-term holders tighten grip, signaling confidence and limiting sell-side pressure.
- MVRV and NUPL metrics turn bullish, confirming Ethereum’s undervaluation and supporting a broader rally driven by smart money.
- ETF inflows and Q2 sentiment shift suggest Ethereum’s rally is not a bounce but the start of a significant bullish market phase.
Ethereum has entered a powerful bullish phase, fueled by on-chain data and rising belief among investors. A tweet from BitBull captured this turning point, pointing to metrics like NUPL, MVRV, and falling exchange reserves. With ETH now trading at $3,582.90 and up 21.24% over the past week, analysts suggest the real move has just begun. This rally, they believe, is not a temporary bounce — but the start of a major sentiment shift.
Smart Money and On-Chain Signals Point to a Bigger Move
Ethereum’s price rally aligns with critical on-chain signals. Glassnode’s NUPL metric revealed a key shift in sentiment during Q2 2025. That shift marked the market bottom and signaled smart money was quietly returning.
ETF inflows followed soon after. Institutional investors began accumulating ETH, boosting confidence and reducing available supply. Consequently, ETH’s price surged, confirming growing bullish conviction.
Besides that, ETH reserves on centralized exchanges keep declining. Fewer coins are available for sale. Hence, long-term holders are preparing for higher prices, not profit-taking.
MVRV Turns Bullish as Dip Buyers Miss Out
The MVRV ratio, another vital indicator, has flipped into bullish territory. This shift signals Ethereum is undervalued relative to historical norms. Additionally, long-term holders continue to hold tightly. They’re not exiting the market — they’re showing strong conviction.
Moreover, while many retail traders wait for a pullback, on-chain trends suggest the dip already happened. ETH under $3,000 could now be history. Price structure and sentiment have shifted dramatically.
Significantly, this isn’t just price action — it’s belief-driven momentum. Sentiment has transformed from fear to conviction. History shows that belief often sparks the strongest bull runs.
Conclusion
Ethereum’s current momentum is built on solid fundamentals and strengthened by smart money inflows. From tightening supply to rising conviction, all signs point toward a market-wide reset. This may well be the start of Ethereum’s next historic leg up — and it’s happening faster than many expected.
