ETH Price Could Exit Its Consolidation Phase As Demand Accelerates

Key Insights:

• ETH price eyes a breakout toward $2,300 as ETF inflows and the RSI momentum strengthen.
• ETH demand rises as over 31M coins leave exchanges, tightening available supply.
• Coinbase Premium flips positive, signaling renewed U.S. investor demand for Ethereum.

ETH price has started to build momentum as whale accumulation kicked up a notch. Over 31 million ETH coins have been quietly withdrawn from exchanges, piquing the interest of investors and traders. Consequently, Ethereum has shaken off weeks of sleepy sideways action, drumming up bullish vibes as demand kicks into gear.

Ethereum price rose 2.7% in a single day on Thursday to hover around $2,157. This recovery follows a brutal stretch in which Ethereum shed over 60% from its 2025 peaks. Nevertheless, the tide has turned amid fresh accumulation pressure.

ETH Coinbase Premium Swings Positive as Exchange Reserves Dip

The Ethereum Coinbase Premium Index flipped positive, flashing green after months in the red. This metric tracks ETH price on US-based Coinbase versus global spots. So, if it rises, it means American demand for ETH is heating up.

At 0.01, the coinbase premium index just flipped almost 2 months into negative territory. Earlier this year, it dipped into negative territory. That signaled sell-offs and cautious vibes, but the flip has sparked talk of institutional rotation.

Ethereum Exchange Supply Signals Demand Surge

At the same time, Ethereum supply on exchanges dropped to multi-year lows amid extensive, continuous withdrawals. Exchange reserves have declined sharply after more than 31 million ETH was withdrawn from centralized exchanges, with Binance accounting for the largest share of outflows.

That suggests investors are locking it away, not dumping. This supply squeeze has further contributed to the current bullish scenario for ETH. Declining supply on exchanges automatically translates to less selling pressure when demand ramps.

Moreover, the ETH turnover on Binance surged to its highest level since September. According to CryptoQuant, Binance’s 30-day ETH Exchange Liquidity Ratio shows that the amount of ETH crypto traded over the past month far exceeds the available supply.

The exchange liquidity ratio measures the relationship between the actual trading volume of coins on the platform and the total supply available on the exchange.

Binance currently has 3.5 million ETH. So, with the current Binance 30D Exchange Liquidity Ratio at 8.47 (high), it indicates an intensive use of the available supply. This phenomenon occurs during periods of significant price volatility or when the market is undergoing a repositioning phase among investors.

Ethereum Price Gains Bullish Momentum, Targets 9% Short-Term Rally

The ETHUSD 1-day price chart shows the asset had a good day, with 0.52% intraday gains amid a market-wide recovery. Overhead, the 50-day simple moving average (SMA) poses a potential resistance level around $2,356.

The price action recently broke out of a 27-day range and shows signs of heading higher. The daily candle still had 12 hours to close. So, it still remains to be seen if the breakout is clean or if it will be a fake-out.

The relative strength index (RSI) adds credibility to the current rally. The indicator sits at 52.65 and is heading higher, signaling bullish momentum is increasing as bearish sentiment on ETH crypto fades.

The 50-level on the RSI is key because once it flips, it means the market has turned from bearish to bullish. It no longer means that selling pressure is reducing; it means that bullish momentum is accelerating.

ETF Inflows and Staking Growth Strengthen Ethereum’s Bullish Case

This technical outlook is further supported by the Ethereum ETF netflows, which are stabilising after sustained outflows. Yesterday, the US Ethereum spot ETF recorded net inflows of $169.40 million.

According to Farside, U.S. Ethereum spot ETFs recorded a net inflow of $169.4 million yesterday. BlackRock’s ETHA saw a net inflow of $39.3 million, while Fidelity’s FETH saw a net inflow of $30.3 million. Institutional demand remained tentative, but early signs of re-accumulation are emerging.

While Ethereum has faced better days, fresh ETF inflows and on-chain metrics remain. Staking demand has surged with total ETH staked approaching 31M and validators surpassing 1 million, pulling more ETH crypto off the market.

Predictions vary, but the setup leans to the upside. Short-term, ETH price could tag $2,300-$2400 if it busts $2,200 resistance.