Ethereum gains 3% in 7 days as exchange outflows tighten supply

Ethereum is outperforming the top 10 crypto assets with a 3% weekly gain, driven by exchange outflows that are tightening available supply.

Ethereum rose 3% over the past seven days to trade near $1,860, outperforming all other top-10 crypto assets as exchange outflows reduced available supply on trading platforms.

The outflows, paired with increased staking deposits and substantial stablecoin inflows to Binance, are shifting supply-demand dynamics, according to CryptoQuant. Such movements reduce circulating ETH on exchanges while increasing on-chain participation.

Futures volume surged 110% to $31.32 billion in the past 24 hours, Coinglass data shows, while the funding rate turned positive at 0.0076%, indicating long positions are paying shorts. The long-to-short ratio of 0.96 suggests bulls are not yet in full control.

Ethereum now faces its first major test at the 100-day EMA of $1,938. A daily close above that level opens a path toward $2,000 and the 200-day EMA at $2,180. Losing the 50-day EMA support at $1,818 could send ETH toward $1,385.

Futures Volume Surges 110% as Funding Turns Positive

Derivatives data paints a bullish picture despite the neutral technical setup. The Relative Strength Index is hovering near 50, indicating balanced momentum, while the Moving Average Convergence Divergence remains in positive territory, showing that upward momentum is continuing to strengthen. The combination suggests traders are waiting for a decisive breakout rather than forcing a move.

Ethereum has held above its 50-day EMA at approximately $1,818 for four consecutive days, a level often viewed as an indicator of improving short-term market sentiment. The 50-day EMA has acted as reliable support during the recovery, with each test drawing buyers back into the market. However, the broader trend remains bearish-defining, with ETH still trading below both the 100-day EMA at $1,938 and the 200-day EMA at $2,180. Reclaiming those levels would signal a more meaningful medium-term trend reversal.

Bitcoin, by contrast, dipped below $62,000 before rebounding to near $62,600, remaining in bearish territory as it approaches its 50-day moving average from below. The divergence between the two largest crypto assets highlights Ethereum's relative strength in the current market environment. Bitcoin ETF flows have also shown improvement, with $273 million in inflows over the past two weeks breaking an eight-week outflow streak, though analysts caution the total remains small relative to the $8 billion previously withdrawn.

Bitmine, a major corporate holder, purchased an additional 30,567 ETH for $36 million over the past week, bringing its total reserves to 5.77 million ETH — equivalent to more than 4.8% of the total Ethereum supply. Chairman Tom Lee has expressed optimism about Ethereum's long-term prospects, citing tokenization of traditional financial assets and growing demand from artificial intelligence applications.

This article is for informational purposes only and does not constitute investment advice.