With ETH supply drying up, investors are eyeing the next breakout zone.
Key takeaways
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Ethereum has seen large outflows from Binance and steady inflows into U.S. spot ETFs in the last week. ETH remains technically strong as it consolidates above key support.
Ethereum [ETH] whales have been busy!
In just eight days, 630K ETH left Binance, while U.S. spot ETFs absorbed another 286K ETH; a double punch proving big players are positioning for the long game.
Is ETH primed for a breakout, or simply biding its time before the next leg higher?
Growing institutional appetite for ETH
Last week, Ethereum’s U.S. spot ETFs posted net inflows of 286,000 ETH, one of the strongest weekly tallies since its debut.
The move came even as ETH closed near $4.4K, so institutions were not deterred by elevated prices.
Source: Glassnode
Glassnode data showed consistent build-up of inflows through July and August, with several weeks surpassing 500,000 ETH in cumulative demand. This points to funds being accumulated.
With supply leaving CEXs at the same time, it looks like LTHs are positioning ahead of a potential breakout.
Binance reserves drain at record pace
Ethereum is also leaving exchanges fast. Between the 23rd and 31st of August, Binance alone saw 630,000 ETH withdrawn, worth nearly $2.7 billion at current prices. That includes a sharp 465,000 ETH drop in just four days!
Source: CryptoQuant
Big players are likely shifting ETH into cold storage, tightening exchange supply with their conviction in a rebound. These phases of exchange drain have lined up with accumulation cycles, giving weight to the idea that whales are positioning early.
ETH steadies above support levels
At press time, ETH traded at $4,384, managing to stay above its 20-day EMA at $4,375 despite recent pullbacks. The price action consolidated after a strong August rally, with buyers defending short-term support zones.
Source: TradingView
The RSI showed neutral momentum. Meanwhile, the 50, 100, and 200-day EMAs trended upward; so the broader structure remains bullish. This cooling-off phase indicates that ETH is digesting gains rather than breaking down, keeping bulls in control as long as the $4,300-$4,375 support range holds firm. Subscribe to our must read daily newsletter
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