Ethereum Sees 89,000 ETH Withdrawals Amid Institutional Confidence

Ethereum [ETH] has experienced significant institutional withdrawals, with over 89,000 ETH, valued at approximately $230 million, being moved from major exchanges such as Binance, OKX, and Kraken within a 24-hour period. These withdrawals, linked to entities like Matrixport and Abraxas Capital, indicate a strategic shift towards long-term holding and reflect growing institutional confidence in Ethereum’s future potential, especially during market uncertainty.

This shift is further supported by the surge in Ethereum’s Stock-to-Flow (S2F) ratio to 69.66, which suggests increasing scarcity. The S2F ratio compares the circulating supply to annual issuance, and a higher value indicates limited availability of new ETH. This dynamic often supports bullish expectations, particularly during accumulation phases, signaling growing demand amidst declining supply and reinforcing Ethereum’s long-term value proposition.

Despite a drop in Open Interest, other key metrics such as the Market Value to Realized Value (MVRV) Z-score and transaction recovery show improving fundamentals. Ethereum’s MVRV Z-score remains negative at -0.037, indicating that most holders are not in significant profit. Historically, negative MVRV zones have preceded rallies, as there is little incentive to sell. This suggests the market may be undervalued or in a healthy reaccumulation phase, offering a bullish undertone and implying reduced profit-taking pressure.

Additionally, Ethereum’s transaction count recently bounced to 1.45 million after a late-June decline, pointing to recovering network engagement. Increased activity often correlates with stronger user participation, which supports long-term sustainability. This rebound adds to ETH’s bullish case, especially if demand continues to rise alongside investor confidence. However, consistency in on-chain interactions will be crucial to reinforce this recovery. If sustained, the revival in usage could support price strength and attract further institutional attention.

Ethereum continues to trade above an ascending support line, signaling that buyers still defend key levels. However, price action remains capped below the $2,642 resistance, with further upside limited by a stronger ceiling at $2,885. This consolidation between trendline support and horizontal resistance suggests indecision. At press time, the Relative Strength Index (RSI) hovered around 55, indicating neutral momentum. Therefore, while the bullish structure remained intact, ETH must break through this resistance band to confirm continuation. Failure to do so could lead to a retest of the $2,403 zone if bulls lose control.

In summary, the recent institutional withdrawals and improving on-chain metrics suggest a bullish outlook for Ethereum. The surge in the S2F ratio, negative MVRV Z-score, and recovering transaction count all point towards growing demand and reduced selling pressure. However, Ethereum must overcome the resistance at $2,642 and $2,885 to confirm a bullish continuation. If these levels are breached, Ethereum could see significant gains in the coming weeks.