Ethereum is showing strong signs of a potential price breakout as institutional demand accelerates alongside a significant supply crunch. Recent data reveals that over 31 million ETH have been withdrawn from centralized exchanges, a move that drastically reduces immediate selling pressure on the asset. The Coinbase Premium Index has also shifted back into positive territory, indicating a sharp rebound in buying activity from U.S.-based institutional investors. This sentiment is further supported by the performance of spot Ethereum ETFs, which recorded a substantial net inflow of $169.4 million in a single trading day. Analysts suggest that this combination of shrinking exchange reserves and robust ETF demand creates a favorable environment for upward price momentum. As the market moves out of its consolidation phase, these on-chain metrics point toward a strengthening bullish case for the second-largest cryptocurrency.
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