Ethereum miners are holding onto their coins more than ever, easing selling pressure that has weighed on the market. Transfers of ETH from miners to Binance, the largest exchange for Ethereum trading, have plunged to near record lows over the last month.
Data analyzed by CryptoQuant reveals a sharp drop in ETH deposits from miners, signaling they are reluctant to cash out at current levels. While Ethereum’s price has risen 21% over the past 30 days, it still trades nearly 50% below last year’s peak, underscoring cautious sentiment.
Where’s the buying interest?
Reduced supply from miners alone hasn’t triggered a meaningful rally. CryptoQuant analyst PelinayPA points out that fewer coins entering exchanges reduces immediate selling pressure but demand needs to pick up for the price to break out. The hopeful catalyst lies with institutional investors showing fresh appetite for Ethereum assets.
The Ethereum ETF activity supports this view, with a recent $23.76 million purchase just two days before a minor sell-off of $18.65 million. This back-and-forth suggests institutions are accumulating strategically, setting the stage for a potential price surge if demand escalates.
Meanwhile, Ethereum is regaining ground against Bitcoin after months of lagging behind, according to analyst CryptoZeno. The market is watching closely for signs of capital rotation back into ETH, which could provide much-needed momentum for the smart contract giant.
This shift comes as the broader crypto space experiences distinct moves. For example, XRP recently tested critical resistance levels, highlighting the diverse dynamics at play across different tokens.
This content is for informational purposes only and does not constitute financial advice.
