- Ethereum’s foundation is quietly strengthening—on-chain, on Wall Street, and on the charts.
- With supply vanishing from exchanges and ETFs piling in, the case for ETH keeps building.
- A breakout above $2,750 could be the spark—especially as ETH starts outperforming Bitcoin.
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Ethereum has recently begun generating strong signals not seen in quite some time—both in terms of on-chain data and institutional activity. A historic drop in exchange supply, accelerating ETF inflows, and key network upgrades are all reinforcing Ethereum’s long-term outlook.
ETH Supply Rapidly Withdrawing From Exchanges
Ethereum’s supply on centralized exchanges has dropped below 4.9%—the lowest level in the network’s history over the past decade. In total, 15.3 million ETH has been withdrawn from exchanges over the last five years, indicating investors’ growing preference to hold rather than sell. In the past month alone, an additional 1 million ETH has exited exchanges, confirming that the trend is accelerating.
This development is highly positive from an on-chain perspective, as it implies reduced selling pressure and the potential for upward momentum. Notably, whale wallets have accumulated 450,000 ETH since the end of April, and wallets holding over 10,000 ETH now collectively own 40.75 million ETH—clear signs that large investors are repositioning in the market. Institutional inflows via ETFs are also helping to establish a solid support level for ETH at current prices.
Institutional Interest Picks Up
Interest in spot Ethereum ETFs has surged in the U.S. market. Last week alone, Ethereum ETFs saw nearly $205 million in inflows. BlackRock’s ETH assets under management have now surpassed $2.9 billion, underscoring Ethereum’s growing appeal among institutional players.
Additionally, the SEC is expected to rule on Ethereum ETFs with staking features by June 1. If approved, these ETFs could open a new demand channel for ETH, with potentially bullish implications—particularly in the medium to long term.
Meanwhile, the Pectra upgrade, which went live on May 7, has enhanced network efficiency and improved Layer-2 operability. Following the upgrade, Layer-2 transaction volumes have grown by over 20%, helping to ease Ethereum’s long-standing scalability issues.
Another positive development is the appointment of Tomasz Stańczak, a leading figure in Ethereum’s developer community, as co-manager. His role is expected to bring more decisive and visionary technical governance to the protocol.
Technical Outlook for Ethereum
Despite these fundamentally bullish developments, ETH has entered a phase of consolidation near a critical resistance zone over the past week. After testing the $2,700 level, ETH saw selling pressure increase, with support found near $2,430. As buying momentum picked up toward the weekend, ETH has returned to the $2,500 range and may be preparing to re-test the $2,700 resistance.
Should ETH break above $2,750 on a daily closing basis, this would likely confirm a breakout, with the next technical target at $3,000. If the rally continues, the medium-term outlook could see moves toward $3,450 and ultimately the prior peak area around $3,900–4,000.
On the downside, $2,500 remains an intermediate support level, while $2,430 is viewed as the main support zone. Daily closes below that level may invalidate the bullish setup, opening the door to a potential retracement toward the $2,100–2,300 range.
Ethereum Signals a Rebound Against Bitcoin
Ethereum’s relative strength versus Bitcoin is also worth monitoring. As the largest altcoin begins to outperform Bitcoin, momentum may continue to shift in ETH’s favor.
ETH/BTC dropped to the 0.018 area in April—its lowest level since January 2020. However, after finding support, the pair rebounded sharply in May, gaining as much as 40%. This move has reignited speculation about a potential altcoin season led by Ethereum.
At the same time, CryptoQuant data shows that ETH has entered an “extremely undervalued” zone relative to BTC—historically a signal of strong upcoming rallies in Ethereum’s favor. Rising spot volumes also suggest that investor attention is swinging back toward ETH.
CryptoQuant analysts note that for this rally to be sustained, the ETH/BTC pair must break above its 1-year moving average, a critical threshold that historically marks Ethereum’s bid for market leadership.
On the daily chart, key support lies at 0.023, backed by short- and medium-term exponential moving averages. A move above 0.026 would signal further bullish continuation. However, if the 0.023 level is lost, it could delay any breakout momentum.
From a broader perspective, Ethereum’s shrinking exchange supply, rising institutional demand, improving network fundamentals, and price recovery against Bitcoin all provide a compelling case for a medium- to long-term bullish trend.
The recent Pectra upgrade, continued ETF inflows, and potential staking ETF approval may reinforce Ethereum’s appeal in the months ahead, as both retail and institutional investors begin to re-evaluate ETH’s market position.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation, or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.