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Institutions like Bit Digital are ditching Bitcoin and accumulating ETH at a record pace.
The ETH supply on exchanges has hit historic lows, signaling stronger hands and reduced sell pressure.
The technical setup indicates bullish momentum, with a breakout above $2,813 potentially triggering a rally to $3,400.
The cryptocurrency market is maturing, and as it does, institutional investors are showing a surprising trend: a shift in capital allocation away from Bitcoin (BTC) and toward Ethereum (ETH).
While BTC continues to dominate headlines and Bitcoin ETFs are certainly attracting attention, Ethereum is quietly experiencing one of its strongest accumulation days since 2020, particularly among institutional investors.
This silent build-up suggests growing confidence in Ethereum’s fundamentals, particularly its transition to Proof-of-Stake and the expansion of on-chain activity. However, with ETH price consolidating into the $2,550-$2,790 price zone, is a breakout on the horizon?
Here’s what’s driving this shift and what the technical chart reveals.
Ethereum's appeal to institutions is no longer theoretical; it is a reality. One of the clearest signs of this shift comes from Bit Digital, a publicly listed crypto mining company.
The firm has completely offloaded its BTC holdings and invested nearly $193 million in Ethereum, bringing its total Ethereum treasury to $254.8 million. This makes it one of the largest publicly held Ethereum treasuries to date.
But Bit Digital isn’t alone. According to on-chain data, Ethereum's ‘mega whales' wallets holding over 10,000 ETH have increased their holdings by 9.3% since October 2024, reclaiming a total of 41.06 million ETH.
It's up from a cycle low of 37.56 million ETH, and this increase is happening at nearly double the accumulation rate seen during the 2022 pre-rally phase.
This accumulation resembles past behavior seen between November 2020 and January 2021, when whales quietly stacked ETH before it surged from $460 to over $1,200.
Another key indicator backing Ethereum’s long-term strength is the historic decline in exchange reserves. The amount of Ethereum held on centralized exchanges has dropped to 18.9 million, the lowest level ever recorded.
When ETH leaves exchanges, it often goes into long-term storage, staking contracts, or decentralized applications. This reduces the available supply for trading, tightening liquidity, and increasing the potential for upward price pressure.
Supporting this, the total ETH staked has surpassed 35.8 million, reflecting a strong commitment to the network’s Proof-of-Stake consensus model. This staking removes even more tokens from circulation, making ETH increasingly scarce on the open market.
On the daily chart, Ethereum is trading inside an ascending triangle, typically a bullish pattern. ETH is trading just beneath the $2,813 resistance, closely aligning with the 0.618 Fib level from its broader decline. This zone has exhibited capped price action on several occasions since April.
The ascending trendline support, visible since mid-April, remains intact, showing strong buying interest at higher lows. ETH recently bounced from the $2,500 region, close to the 0.382 Fibonacci level at $2,425, and now hovers near $2,800.
Key support lies between $2,500 and $2,536, an area where over 3.45 million ETH have their cost basis, indicating a significant concentration of long-term holders. This level is acting as a solid floor for now.
A decisive breakout above $2,813-$2,820 could trigger a strong rally toward $3,068, with potential upside extending to $3,400 by August if volume confirms.
On the downside, a breakdown below the ascending trendline and $2,500 would invalidate the bullish structure and possibly retest $2,425 or $2,418.
The Relative Strength Index (RSI) is currently above 66, showing strong momentum without being overbought, supporting the case for further gains.
Also Read: Ethereum Price Analysis: Bulls Hold $2,550 Trendline as ETF Flows, Derivatives Data Support Uptrend
While Bitcoin remains the face of crypto for many, Ethereum is quietly demonstrating its worth to both institutional investors and long-term holders through record-breaking whale accumulation, all-time low exchange reserves, and a growing staking market. Ethereum is building a foundation of strength that may allow for some price realization.
With price consolidating slightly below resistance, eyes are turning to whether ETH can once again gain support above $2,800. If it does, we may be witnessing the start of Ethereum’s next major leg higher, one backed not by hype but by smart money and real utility.
For investors watching from the sidelines, the disconnect between on-chain strength and price stagnation might just be the opportunity they’ve been waiting for.
1. Why are institutions buying Ethereum over Bitcoin now?
Institutions are attracted to Ethereum’s utility, staking rewards, and recent shift to Proof-of-Stake, making it a more dynamic asset.
2. What does a low ETH exchange reserve mean?
It indicates fewer tokens are available for sale, suggesting long-term holding and potential upward price pressure.
3. What is the significance of ETH staking hitting 35.8 million?
It shows rising trust in the network and removes tokens from circulation, reducing active supply.
4. What does the current chart pattern suggest for ETH?
A break above $2,813 could signal the next leg higher, targeting $3,068 and beyond.
5. Is now a good time to buy Ethereum?
With strong on-chain metrics and bullish technicals, Ethereum may offer a favorable risk-reward setup for long-term investors.
