Ethereum’s Breakout and Whale Accumulation Suggest Possibilities for Rally Amid Market Shift

Ethereum’s breakout and whale activity point to a possible rally amid deep undervaluation.

  • Exchange Reserves declined as whales accumulated Ethereum.

  • Drop in short-term holder activity and deeply negative MVRV mark a phase of long-term accumulation.

Ethereum [ETH] is staging a powerful comeback as its total value locked (TVL) dominance surged past 53%, its highest since March.

This renewed dominance aligns with significant whale movements, including 23,844 ETH transferred to Coinbase Institutional and 58,430 ETH moved between unknown wallets.

These large transactions suggest rising institutional interest and accumulation. At press time, ETH traded at $2,362.31, up 2.62% in 24 hours.

Is supply pressure finally easing?

Ethereum’s Exchange Reserves dropped by 1.1% in the past 24 hours to 19.25 million ETH, while Netflows plunged by 8.26%, showing a negative flow of 213,232 ETH.

These outflows indicate that more coins are being moved into self-custody, reducing the immediate sell pressure on centralized exchanges.

In fact, this implies investors are moving ETH into self-custody. When coins exit exchanges, sell pressure often eases, creating room for price stability—or even upward movement.

Ethereum Exchange Netflow

Source: CryptoQuant

MVRV long/short difference

Ethereum’s MVRV Long/Short Difference dropped to -40.91%, one of its lowest levels in recent months. Historically, such deep negative readings appear during accumulation phases or early recovery cycles.

Consequently, this may signal a strategic opportunity for fresh capital to enter the market. However, sustained recovery will likely depend on whether investor conviction holds at higher price levels.

Ethereum MVRV Long/Short Difference

Source: Santiment

Sharp decline in new holder activity

The 0d–1d HODL Wave declined to 0.114, suggesting a fall in short-term speculative activity. Fewer newly moved coins hint that current participants are conviction-driven rather than swing traders.

Although this reduces short-term volatility, it may also limit immediate buying momentum unless broader interest reignites.

Ethereum 0d-1d HODL Wave

Source: Santiment

Only 42.75% of total ETH fees were burned over the past seven days, down from the previous 90-day average of 35.03%.

This softening burn rate points to weaker on-chain transactional demand, which tempers Ethereum’s deflationary narrative for now.

Although lower burn rates reduce the scarcity effect, the sustained network usage still supports Ethereum’s broader utility case.

It remains to be seen whether upcoming DeFi activity reignites the burn rate in the coming weeks.

Has ETH flipped its bearish structure?

Ethereum recently broke out of a descending trendline that had persisted for several months, confirming a strong trend reversal.

The breakout was followed by a sharp rally toward the $2,365 level. The RSI read 81.90, showing that the asset is overbought in the short term.

However, momentum remains strong. If price holds above $1,761.30, the path toward $2,526.54 remains open.

Ethereum Price Chart

Source: TradingView

Conclusion

Ethereum’s rising TVL dominance, declining Exchange Reserves, and confirmed breakout structure all point to a shift in market momentum.

Despite softening fee burns and reduced short-term activity, other on-chain indicators suggest growing institutional interest and strong-handed accumulation.

Based on these factors, Ethereum appears to be entering the early stages of a major rally, one potentially fueled by strategic repositioning and renewed capital inflows.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

TRUMP ADMINISTRATION WAS AWARE OF IN ADVANCE OF IRAN’S ATTACK ON AL-UDEID AIRBASE:AXIOS

TRUMP ADMINISTRATION WAS AWARE OF IN ADVANCE OF IRAN'S...

CNBC: TRUMP IN SITUATION ROOM WITH DEFENSE SECRETARY JOINT CHIEFS

CNBC: TRUMP IN SITUATION ROOM WITH DEFENSE SECRETARY JOINT...

WIRED: Telegram Purged Chinese Crypto Scam MarketsThen Watched as They Rebuilt

WIRED: Telegram Purged Chinese Crypto Scam MarketsThen Watched as...

Bitcoin Drops Over 2% Amid Geopolitical Tensions as Trump Prepares Response to Iranian Attack

Bitcoin experienced notable volatility amid escalating geopolitical tensions following...

COINBASE: Coinbase will add support for Sonic (S) on the Sonic network.

COINBASE: Coinbase will add support for Sonic (S) on...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img