- A major whale and BlackRock accumulated over $22 million in ETH, signaling deep institutional and long-term investor confidence.
- ETH exchange supply has fallen to a 9-year low near 10 percent, pointing to reduced sell pressure and increased cold wallet activity.
- On-chain trends, institutional buys, and declining exchange balances suggest Ethereum is primed for a potential price breakout.
According to Lookonchain, A renewed wave of bullish momentum is building around Ethereum (ETH) as on-chain signals intensify. A major ETH whale resumed accumulation after a six-month break, pulling 1,700 ETH—worth $3.1 million—from Binance. This large holder now commands 5,000 ETH valued at $9 million, though still sits on an unrealized $3.6 million loss. However, the renewed buying hints at growing confidence in Ethereum’s long-term upside.
Besides this whale activity, institutional interest surged with BlackRock making headlines. The firm purchased 10,897 ETH on Coinbase, spending $19.65 million. This aggressive buy signals that traditional finance continues to bet big on ETH. Consequently, market sentiment has turned bullish, with ETH price targets ranging from $8,000 to $10,000 gaining traction among analysts and investors.
Exchange Supply Hits 9-Year Low
ETH’s supply on centralized exchanges has now dropped to its lowest point in nine years. This long-term metric points to shrinking sell-side pressure. Since 2016, the percentage of ETH held on exchanges peaked above 28%, especially during previous bull runs. However, the trend reversed sharply from 2021 onward.
Source: Discover Crypto
By early 2025, exchange balances have fallen near 10%. This marks a 65% drop from their all-time high. Moreover, this decline persisted despite price volatility from 2021 to 2024. ETH has ranged from $1,000 to $4,000 over this time, but balances kept dropping. Hence, the divergence suggests users are increasingly shifting ETH into cold wallets or staking platforms.
Long-Term Holding Signals Growing Confidence
Additionally, the consistent fall in exchange supply aligns with Ethereum’s evolving ecosystem. The rise of ETH staking and DeFi protocols has encouraged long-term holding. This reduces circulating supply and heightens upward pressure on price.
Furthermore, historical patterns show an inverse correlation between ETH price and exchange balances. Previous bull markets often began when exchange supply declined. That pattern appears to be repeating.
