Ethereum prices have remained prominently strong in recent weeks, giving many investors a reason for cautious optimism. The assets were temporarily traded last week for nearly $4,700. This approached the all-time high of $4,878 recorded in 2021, and has since been revised to around $4,633.
Despite this pullback, Ethereum has grown nearly 30% over the past month, bringing back the majority of owners back to profit, according to Coingecko data.
In addition to these pricing developments, analysts continue to monitor exchange data for broader signs of market sentiment. One such analyses comes from Pelinaypa, a contributor to Cryptoquant’s Quicktake platform.
This indicator measures whether more ETH is moving towards exchange (inflow) (outflow), or whether it provides insight into potential sales pressures or long-term accumulation behaviors.
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Exchange Netflow data to refer to a drop in sales pressure
According to Pelinaypa, current Netflow photos suggest that Ethereum investors are mostly removing coins from the exchange. Historical data shows a significant influx with a substantial amount of ETH transferred to the trading platform, often preceded by price adjustments when investors prepare for a sale.
Conversely, the prominent outflows have historically emerged before the bull market surges, reflecting confidence in retention or long-term storage. “The past cycles have seen strong exchange outflows just before the massive upward trends of 2017, 2021 and 2024,” Perinaipa explained, adding:
What we’re looking at now is consistent negative Netflow. In other words, ETH is off the exchange. This generally reduces immediate sales pressure and supports cases of bullish momentum ongoing.
Analysts said that while inflows could cause short-term pullbacks, the current outflow dominant environment suggests that Ethereum retains a significant rise potential in the medium to long term.
Price actions along these signals reflect markets where participants are leaning towards accumulation rather than distribution.
Ethereum institutional demand and technical outlook
Ethereum’s powerful performance is interpreted through a technical lens. Several traders have pointed out that ETH has erupted against Bitcoin after years of relative unperformance.
A Crypto analyst known as X’s Cryptobatman highlighted the importance of this trend, arguing that Ethereum’s gathering could enter a new phase of market recognition.
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“ETH has finally erupted against BTC,” he wrote, noting that the development demonstrates the potential for Ethereum to gain even more traction in the broader crypto market.
After years of downtrends, $eth finally broke out against $btc
Ethereum’s recent rally is already insane, so it’s crazy to think about the potential for a rise that this market actually holds.
But in reality, we’re just starting out. pic.twitter.com/znbkhhudjz
– Batman ⚡ (@cryptosbatman) August 22, 2025
Furthermore, institutional indicators are beginning to match this narrative. Investment funds and exchange trade products linked to Ethereum have experienced steady growth in their holdings, with large investors still maintaining exposure even during periods of volatility.
Characteristics of Iameg created with Dall-E, TradingView charts
