Ethereum TVL surpasses 53%: A breakthrough sign for ETH?

TVL Ethereum exceeds 53%: Breakthrough signal for ETH?* Exchange reserves fall as whales accumulate Ethereum.

  • The activity of short-term investors has declined and the deep negative MVRV marks a long-term accumulation phase.

Ethereum [ETH] is making a strong comeback as the dominance of total value locked (TVL) has exceeded 53%, the highest level since March.

This dominance coincides with the movements of whales, including 23,844 ETH transferred to Coinbase Institutional and 58,430 ETH moving between unidentified wallets.

These large transactions indicate growing interest and accumulation from institutions. At the time of reporting, ETH is trading at 2,362.31 USD, up 2.62% in the last 24 hours.

Is the supply pressure gradually decreasing?

Ethereum reserves on the exchange fell by 1.1% in the past 24 hours to 19.25 million ETH, while net outflows decreased by 8.26%, indicating a negative cash flow of 213,232 ETH.

These outflows indicate that more coins are being transferred to private custody, reducing immediate sell pressure on centralized exchanges.

This implies that investors are transferring ETH into private custody. When funds leave the exchange, selling pressure often decreases, facilitating price stability or even an upward trend.

TVL Ethereum surpasses 53%: Breakthrough sign for ETH? - Bitcoin News - Latest Coin News Update 24/7 2025 Source: CryptoQuant

The difference between long-term/short-term MVRV

The long/short MVRV of Ethereum has fallen to -40.91%, one of the lowest levels in recent months. History shows that these deep negative levels often occur during accumulation phases or the first recovery cycle.

Therefore, this may signal a strategic opportunity for new capital entering the market. However, sustainable recovery will depend on whether investor confidence can be maintained at higher price levels.

TVL Ethereum exceeds 53%: Breakthrough signal for ETH? - Bitcoin News - Latest Coin News Update 24/7 2025 Source: Santiment

The sharp fall in activity of new investors

HODL Wave 0d–1d fell to 0.114, indicating a decline in short-term speculative activity. Few coins have been moved recently, suggesting that current members are mainly relying on belief rather than being swing traders.

Although this reduces short-term volatility, it may also limit immediate buying momentum unless broader interest is revived.

! Ethereum TVL Exceeds 53%: Signs of ETH Breakout? - Bitcoin News - Latest Coin News Update 24/7 2025 Source: Santiment

Only 42.75% of the total ETH fees were burned in the past seven days, down from an average of 35.03% over the previous 90 days.

This decrease in the burn rate indicates weaker on-chain trading demand, reducing the current scarcity of Ethereum.

Although a lower burn rate reduces the scarcity effect, continuous network usage still supports the broader utility case for Ethereum.

We have to wait and see if the upcoming DeFi activity can reactivate the burn rate in the coming weeks.

Has Ethereum reversed its bearish structure yet?

Ethereum has recently broken through a long-standing resistance level, confirming a strong trend reversal.

After that, the price surged to 2,365 USD. The RSI index reached 81.90, indicating that the asset is overbought in the short term.

However, the momentum remains strong. If the price stays above 1,761.30 USD, the path to 2,526.54 USD is still open.

! Ethereum TVL Exceeds 53%: ETH Breakout Signs? - Bitcoin News - Latest Coin News Update 24/7 2025 Source: TradingView

Conclusion

The increase in TVL, a decrease in exchange reserves, and the confirmation of structural breaks all indicate a shift in the market dynamics of Ethereum.

Although the burn rate is softer and short-term activity has decreased, other on-chain indicators show increasing institutional interest and strong accumulation.

Based on these factors, Ethereum seems to be entering the early stage of a major accumulation, potentially driven by strategic adjustments and new capital flows.

Thank you all for reading this article!

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