Ethereum (ETH) Supply Is Falling — CryptoQuant Says Institutions Are What Turn That Into a Rally

Ethereum (ETH) is trading between $1,890 and $1,915 on Wednesday, holding above key support levels following a volatile session tied to the Federal Reserve’s rate decision. 

The price action is range-bound. But a new report from blockchain analytics firm CryptoQuant identifies a supply-side development that, combined with the right demand catalyst, could set up a meaningful move higher.

Ethereum Has Less Selling Pressure 

According to CryptoQuant, the amount of Ethereum miners are sending to cryptocurrency exchange Binance has dropped to near its lowest level in over a year. 

After several spikes in earlier months, miner transfers fell sharply through July and settled near historic lows. Fewer coins hitting exchanges means less ETH available for immediate sale — which takes some of the downward pressure off the price.

But CryptoQuant was clear about the limits of that signal. Less selling from miners is not the same as a rally. Demand still has to show up. 

“Lower supply is a positive signal for Ethereum, but weak demand continues to keep the price range bound,” the firm wrote. “A new wave of institutional buying could be the catalyst for the next upward move.”

That institutional buying has been arriving, though not yet at the scale needed to break the current consolidation. According to SoSoValue data, spot Ethereum ETFs recorded $84.42 million in net inflows in the week of July 7 to 11 — the first positive week after eight consecutive weeks of outflows. 

The following week brought $105 million, and the week of July 20 to 24 added another $103.9 million. July’s total net inflows stand at $361 million as of July 29, with BlackRock’s ETHA absorbing the vast majority of those flows. 

$2,773 Is on the Table 

Market analyst Ali Martinez laid out what a demand-driven breakout could target. Following Ethereum’s recent golden cross — a technical signal where the short-term moving average crosses above the long-term moving average, typically interpreted as a bullish indicator — Martinez identified the $1,980 to $2,080 range as the first major resistance zone. 

The analyst said on social media site X Tuesday that clearing that zone would open the path toward $2,773 as the next key level to watch. At current prices near $1,915, the first resistance sits roughly 3% to 8% above where Ethereum trades now. 

Ultimately, the supply setup CryptoQuant described removes one obstacle. Whether the exchange-traded inflows building through July are enough to actually push prices higher is the question the market has not answered yet.

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