Ethereum is in the process of reconstructing its foundation. Following an extended phase of lackluster price fluctuations and unstable ETF inflows, the landscape is beginning to shift. For the first time in six months, staking inflows have shifted to a positive trajectory, signaling that institutions are actively engaging in the market. Exchange Balances have experienced a rapid decline this cycle, while Staking Inflows have shown a positive shift for the first time in six months. Currently, more than 745,000 ETH are lined up for staking, while approximately 360,000 ETH are in the queue to exit. There is significant confidence in the long-term potential. The 90-day Spot Taker CVD indicates that sell pressure is retreating to neutral territory, suggesting that aggressive selling is slowing down.
Despite the negative ETF flows, the on-chain metrics present a contrasting picture. Smart contract deployments have reached unprecedented levels, while the value of real-world assets on Ethereum has surged to almost $19 billion. There’s genuine utility supporting it all. Institutional flows are affirming the stability. Despite the lackluster price movement, ETHA (BlackRock’s Spot Ethereum ETF) has seen significant accumulation. These holders are now significantly positioned long, boasting 486 long positions compared to a mere 1 short. This occurs in light of the careful perspective. ETHA ownership has experienced consistent growth as we approach the end of 2025.
Institutions are ramping up their exposure, even as sentiment remains delicate. In a striking development, Trend Research has acquired 46,000 ETH within the last 24 hours. Their total ETH exposure currently stands at 626k ETH. Ethereum appears to be experiencing a period of compression. At this time, the price hovered just beneath the mid-Bollinger Band, showing no clear signs of a breakout. The RSI indicated a neutral momentum at the time of writing, while the MACD suggested a loss of direction.
Notably, downside attempts have been absorbed above the lower Bollinger Band, maintaining the $2,800-$2,900 zone as short-term support. Significant shifts are expected to align with the trends of the wider market, rather than set the pace themselves. Ethereum’s supply is on a downward trend, with 745K ETH currently queued for staking, while exchange balances are declining at rapid rates. ETHA recorded 486 long positions compared to a mere 1 short, even amid lackluster price movements.