Ethereum – How an 8% supply squeeze is pushing ETH towards price discovery
Main Idea
Ethereum (ETH) is experiencing a supply squeeze due to institutional accumulation, with 8% of its supply locked in ETFs and corporate reserves, which is driving price discovery and reducing sell-side pressure.
Key Points
1. About 8% of Ethereum's supply is now held in ETFs and corporate reserves, indicating strong institutional interest.
2. ETH recently saw $1.7 billion in realized profits at $4,590, the largest spike since 2021, yet sell-side pressure was absorbed, leading to a 2.58% intraday rally.
3. The Strategic ETH Reserve (SER) and ETF entities hold 8.2% of ETH's total supply, tightening market liquidity and reinforcing bullish momentum.
4. Strong institutional accumulation is turning volatility into a structural advantage for ETH, sustaining FOMO and risk-on sentiment.
5. ETH's price action suggests a shift from weak-hand sell-offs to absorption by long-term holders, reducing capitulation-driven cycles.
Description
How does 8% of ETH in institutional reserves impact the market?
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