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Ethereum is demonstrating robust bullish momentum, driven by key on-chain metrics, institutional ETF inflows, and a notable shift in smart money sentiment.
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Long-term holders are reducing their exchange supply, indicating increased confidence and a potential supply squeeze that supports sustained price appreciation.
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According to COINOTAG sources, metrics such as MVRV and NUPL have turned bullish, reinforcing Ethereum’s undervaluation and signaling a broader market rally.
Ethereum’s bullish surge is backed by falling exchange reserves, positive MVRV and NUPL metrics, and strong ETF inflows, marking a pivotal market sentiment shift.
Ethereum’s On-Chain Data Signals a Strong Bullish Trend
Ethereum’s recent price action is underpinned by compelling on-chain data that suggests a fundamental shift in market dynamics. The decline in exchange reserves highlights that long-term holders are increasingly withdrawing their ETH from centralized platforms, reducing sell-side pressure and signaling confidence in future price appreciation. This behavior typically precedes sustained rallies as available supply tightens.
Additionally, the Network Value to Realized Value (MVRV) ratio has transitioned into bullish territory, indicating that Ethereum is currently undervalued relative to its historical averages. This metric, combined with the Net Unrealized Profit/Loss (NUPL) turning positive, reflects a market where investors are moving from a state of loss to profit, often a precursor to increased buying activity and upward momentum.
Institutional ETF Inflows Reinforce Ethereum’s Market Strength
Institutional interest in Ethereum has surged, as evidenced by significant ETF inflows during Q2 2025. These inflows not only inject capital but also enhance market confidence by validating Ethereum’s role as a mainstream digital asset. Institutional accumulation reduces circulating supply and often leads to more stable price appreciation compared to retail-driven rallies.
Market analysts from COINOTAG emphasize that this influx of smart money is a critical factor differentiating the current rally from previous short-lived price spikes. The combination of on-chain data and institutional participation suggests that Ethereum’s price movement is supported by fundamental demand rather than speculative trading.
Long-Term Holder Behavior and Market Sentiment Shift
Long-term holders have demonstrated a tightening grip on their Ethereum assets, as reflected by declining exchange balances and reduced selling activity. This behavior indicates a shift from short-term profit-taking to a conviction-driven holding pattern, which is essential for sustaining a bullish market phase.
Moreover, sentiment indicators such as NUPL reveal a transition from fear to confidence among investors. This psychological shift is crucial, as historical data shows that bull markets are often fueled by growing belief in asset appreciation rather than mere technical factors. The current environment suggests that Ethereum’s dip below $3,000 may have marked a market bottom, with the subsequent rally representing a genuine recovery.
Technical and Sentiment Analysis Confirm Ethereum’s Upside Potential
Technical analysis aligns with on-chain and sentiment data, reinforcing the bullish outlook for Ethereum. The price structure has broken key resistance levels, and volume patterns indicate strong buying interest. Combined with positive MVRV and NUPL readings, these factors suggest that Ethereum is entering a new phase of price discovery.
COINOTAG experts highlight that while some retail traders anticipate a pullback, the prevailing data suggests that the market has already absorbed the recent correction. This convergence of technical and fundamental signals points to a sustained upward trajectory supported by smart money accumulation and improving market psychology.
Conclusion
Ethereum’s current rally is grounded in robust on-chain fundamentals, institutional ETF inflows, and a marked shift in investor sentiment. The reduction in exchange supply, bullish MVRV and NUPL metrics, and growing conviction among long-term holders collectively indicate a significant market reset. This confluence of factors suggests that Ethereum is poised for a sustained bullish phase, offering investors a compelling opportunity as the market evolves.
