Ethereum (ETH) is entering a phase that analysts say resembles the early stages of its strongest market cycles, driven by institutional accumulation, shrinking exchange supply, and new proposals aimed at stabilizing the network’s economics.
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As large investors deepen their presence and developers explore changes that could make transaction fees more predictable, sentiment on Wall Street has shifted sharply recently. For many, the combination of tightening supply and improving fundamentals has created conditions that could support a meaningful repricing.
ETH's price records some gains on the daily chart. Source: ETHUSD on Tradingview
Exchange Supply Tightens as Institutions Accelerate Accumulation
Ethereum held on centralized exchanges has fallen to its lowest level since the network launched in 2015. Glassnode data shows that balances dropped to 8.7% of the total supply last week, marking a 43% decline since July.
The reduction is tied to staking, layer-2 migration, institutional custody, and long-term treasury allocations, destinations that rarely send tokens back to exchanges.
BitMine Immersion Technologies, now the largest corporate holder of Ether, expanded its position by another $199 million over the weekend. The firm controls $11.3 billion in ETH, representing about 3.08% of supply, and continues buying toward its 5% target.
ETFs have also contributed to the drawdown, with cumulative inflows now above $12 billion. Analysts note that nearly 40% of all ETH is locked in staking or institutional products, creating one of the tightest supply environments the asset has experienced.
Technical analysts point to hidden signs of accumulation. Recent On-Balance Volume readings have broken above resistance, even as the price lingers near $3,050, a divergence that some interpret as indicating buying pressure.
Fee Reform Pushes Forward as Vitalik Buterin Proposes Gas Futures Market
Alongside market activity, a new economic proposal from Vitalik Buterin is drawing attention. The Ethereum co-founder outlined a system for onchain gas futures that would allow users to lock in transaction fees for future time periods.
The mechanism resembles traditional futures markets and is designed to help traders and developers hedge against sudden increases in network demand.
Buterin argues that clearer forward pricing could support businesses that rely on predictable costs, particularly as activity expands across staking, tokenization, and decentralized applications. Although still in its early stages, the idea is viewed as part of a broader effort to make Ethereum more stable as it scales.
Analysts See Conditions Forming for a Larger Cycle
Market commentators increasingly cite a combination of shrinking supply, rising institutional involvement, and improving network efficiency as reasons Ethereum may outperform in the next major cycle.
Some compare current dynamics to Bitcoin eight years ago, noting that Ethereum’s evolving economic model and expanding role in tokenized finance give it a broader set of drivers than in previous cycles.
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Whether these developments immediately translate into price gains remains uncertain. But with exchange balances at record lows and institutions steadily accumulating, analysts agree that Ethereum is entering a structurally different phase, one defined less by speculation and more by sustained demand.
Cover image from ChatGPT, ETHUSD chart from Tradingview
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