Key Highlights:
- ETH exchange supply falls to 4.89%, the lowest in over 10 years.
- Wyckoff pattern points to possible breakout above $4,000.
- Institutional AUM on Ethereum surges past 92% of total tokenized value.
The exchange supply of Ethereum (ETH) has dropped to a historic low of 4.89%. This suggests that holders are keeping their ETH for the long term.
At the same time, the token’s price formed a Wyckoff pattern. If this trend continues, it could rise toward $4,000 as institutional adoption grows.
Ethereum Exchange Supply Hits Multi-Year Lows
For the first time, the percentage of Ethereum supply on exchanges has fallen below 4.9%. Santiment data has hit its lowest point ever. This suggests that more people are holding onto their tokens for extended periods.

Bitcoin’s exchange supply is now 7.1%, which is the lowest it has been since November 2018. In the last five years, exchanges have lost 1.7 million BTC and 15.3 million ETH.
The gradual decrease in coins on exchanges suggests that people keep their coins rather than sell them. In the past, such trends have often been followed by significant price increases.
A drop in exchange reserves can make less supply available for sale, pushing prices higher when demand increases.
While this pattern continues, the price movement is now following these signs. Ethereum has just climbed above $2,400 and follows a pattern similar to Wyckoff’s accumulation phases.
Wyckoff Pattern Signals Breakout Phase
On the weekly chart, ETH has formed a Wyckoff setup and is finishing the “Spring” phase. Merlijn The Trader’s technical analysis shows that ETH has already tried the support level after the spring phase.
Ethereum may experience a strong rally, often called a “jump across the creek.” This momentum could push its price toward $4,000 and beyond.

According to this structure, the market has handled the pressure to sell and is now set to move up strongly. As you can see in the chart, the “Test” is happening now, and it helps to see if buyers can continue to raise the price.
The $2,300 level has shown strong support. Bulls may take charge if the ETH price moves above $2,600–$2,800. The Wyckoff schematic suggests a final rally phase. Rising momentum could align with broader economic trends.
Ethereum Dominates Tokenized Assets
As Ethereum leaves exchanges, it is finding a new home in the world of tokenized assets. The BUIDL fund from BlackRock, a major institutional crypto product, has now tokenized nearly $3 Billion.
The data shows that over 95% of these tokenized assets are on ETH and Layer-2 networks.

This situation confirms Ethereum’s position as the main infrastructure for institutions. By mid-May 2025, Ethereum controlled 92.8% of the total assets managed on all chains. Aptos came in second with 1.86%, and Avalanche was third with 1.84%.
The entry of institutions into ETH products increases demand and strengthens their usefulness over a long period. Moving assets from exchanges into tokens or custody wallets makes fewer assets available, even moreens the market.
ETH Funding Turns Positive Amid Inflation Spike and Transaction Surge
Recently, most platforms have seen their funding rates turn positive. This means that long traders are paying more, which shows that bullish sentiment is rising.
ETH perpetuals on Binance, Bybit, and OKX are now showing positive funding rates, after being negative for most of April.

As ETH’s price rises, it is now above $2,400 after falling below $1,800 earlier this month. Traders are showing confidence in rising prices by returning to positive funding.
At the same time, there are signs of inflation returning. Truflation reports that inflation has risen by 0.64% during the past 18 days. Central banks could postpone interest rate cuts if inflation continues to increase.

Markets face a period of volatility if the Fed does not cut interest rates now. Even so, a busier network on Ethereum could help it resist the impact of broader trends.
The rise in on-chain activity also helps make a case for a bullish trend. Ethereum’s transactions have increased sharply, reaching more than 23.26 million.
The most recent numbers indicate that usage has suddenly increased due to more people using the platform for practical purposes. As a result of this jump, gas usage could grow, and even more value might be locked in the network.
ETH remains above $2,300, showing stability. The expanding ecosystem and technical indicators suggest growing momentum in on-chain activity.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.




