Tightening Supply and Rotating Capital: What's Holding Back Ethereum's Price
Ethereum's price has been stuck near $1,900 despite a tightening supply and shifting capital flows. On-chain analysts have pointed out that coins are leaving exchanges, staking is absorbing supply, and stablecoin liquidity is rotating onto Ethereum's rails.
Exchange reserves have fallen by about 10% since January to around 15 million ETH. Large holder movements are also below recent averages, indicating that holders are choosing to keep their coins staked rather than sell them.
In addition, exchange-traded funds (ETFs) have been removing supply from the market, with cumulative net inflows reaching nearly $11.46 billion. New smart contract deployments have also increased, widening the gap between shrinking available supply and expanding on-chain usage.