Ethereum's Price Reversal Hints at 850% RWA Growth and 17% Supply Shift

The bearish outlook for Ethereum's price could be nearing its end, as indicated by two significant fundamental metrics. These metrics suggest a potential shift that could impact the price of ETH and possibly catalyze a bullish reversal.

The lackluster performance of ETH in 2024 has been a concern for investors, but this outlook could change due to two key fundamentals: the growth in the Real-World Assets (RWA) sector and the decline in ETH held on exchanges. The RWA sector has seen an 850% growth in the past year, with Ethereum and zkSync capturing over 80% of the market share together. This sector has also grown more than 50% in the past 30 days, indicating a strong trend towards utility-driven investments rather than hype or vanity.

As the crypto market matures and institutional investors become more involved, the next phase of the bull run is likely to be driven by utility. This future outlook suggests that Ethereum's price could trigger a significant bull run. The second fundamental metric is an on-chain indicator showing a steep decline in the amount of ETH held on exchanges, while high-net-worth investors' holdings have increased. This divergence indicates that selling pressure on exchanges is decreasing as supply moves into long-term holders.

The amount of ETH on exchanges dropped from 10.9 million to 9.3 million in under four months. Meanwhile, the supply held by top non-exchange addresses grew by more than 17 million to 68.8 million as of March 17. This shift in holdings suggests that investors are moving their ETH to more secure, long-term storage solutions, which could support a bullish reversal.

With Ethereum's price spending more than a week below the $2,000 psychological level, the outlook remains grim. However, from a technical perspective, the next two key hurdles include $2,100 and $2,200. For a decisive bottom formation or confirmation, Ethereum's price needs to overcome these levels. The next two critical resistance levels are $2,602 and $2,768. These blockades will test the bulls' strength and buying pressure. A failure to overcome these levels will lead to a lower high, which could signal that the uptrend has not yet begun.

A decisive daily candlestick close above $3,014 will confirm the bull run. In such a case, Ethereum price predictions forecast targets of $4,000, $4,100, and even new all-time highs. The growth in the RWA sector and the decline in ETH held on exchanges are two key fundamental metrics that suggest a bullish reversal for Ethereum's price, potentially leading to a massive bull run driven by utility.