• Exchange Reserves declined as whales accumulated Ethereum.
• Drop in short-term holder activity and deeply negative MVRV mark a phase of long-term accumulation.

Ethereum [ETH] is staging a powerful comeback as its total value locked (TVL) dominance surged past 53%, its highest since March. 

This renewed dominance aligns with significant whale movements, including 23,844 ETH transferred to Coinbase Institutional and 58,430 ETH moved between unknown wallets. 

These large transactions suggest rising institutional interest and accumulation. At press time, ETH traded at $2,362.31, up 2.62% in 24 hours.

Is supply pressure finally easing?

Ethereum’s Exchange Reserves dropped by 1.1% in the past 24 hours to 19.25 million ETH, while Netflows plunged by 8.26%, showing a negative flow of 213,232 ETH. 

These outflows indicate that more coins are being moved into self-custody, reducing the immediate sell pressure on centralized exchanges. 

In fact, this implies investors are moving ETH into self-custody. When coins exit exchanges, sell pressure often eases, creating room for price stability—or even upward movement.

MVRV long/short difference

Ethereum’s MVRV Long/Short Difference dropped to -40.91%, one of its lowest levels in recent months. Historically, such deep negative readings appear during accumulation phases or early recovery cycles.

Consequently, this may signal a strategic opportunity for fresh capital to enter the market. However, sustained recovery will likely depend on whether investor conviction holds at higher price levels.