Ethereum is enjoying one of the strongest stretches in its history, according to a new CryptoQuant market report – but the same forces driving its strength may also set the stage for near-term turbulence.
Holdings in Ethereum investment funds have doubled since April, now totaling about 6.5 million ETH. At the same time, wallets controlled by whales – balances between 10,000 and 100,000 ETH – have surged past 20 million ETH. CryptoQuant interprets this as both a sign of deep institutional conviction and a signal that much of the “smart money” is already positioned, limiting immediate upside momentum.
Record Staking Locks Up Supply
Staking continues to expand, with more than 36 million ETH now locked into validator contracts. This cuts down circulating supply and reinforces confidence in Ethereum’s long-term future. Yet the sheer size of staked assets also means fresh inflows could taper if the market loses steam, slowing the next leg higher.
Ethereum’s network is busier than ever. Daily smart contract executions have exceeded 12 million, while stablecoin transfers, DeFi interactions, and token activity have pushed transaction counts and active addresses to new records. These metrics underline Ethereum’s dominance as the backbone of programmable finance.
Exchange Flows Hint at Accumulation
Another bullish sign comes from exchange behavior. ETH deposits to centralized exchanges have fallen sharply since the token touched $5,000, suggesting investors are holding rather than preparing to sell. For CryptoQuant, this reflects a market bracing for higher prices rather than liquidations.
Even so, technical barriers loom large. Ethereum’s recent rally stalled at $5,200, a level that has repeatedly acted as resistance. Currently trading near $4,400, ETH could face an extended consolidation — or even a pullback — if it fails to convincingly break through that ceiling.
The Bigger Picture
Institutional demand, record staking, and historic on-chain growth paint a picture of a network at its strongest point yet. But with whales and funds heavily allocated, Ethereum’s next big move will depend on whether buyers can muster enough momentum to crack past resistance and keep the bull cycle alive.
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Source: https://coindoo.com/ethereum-on-chain-activity-at-all-time-highs-but-can-the-rally-last/