TL;DR
- Ethereum breaks above $3,800 after jumping 7% in 24 hours, driven by institutional buying, reduced liquid supply, and regulatory relief.
- SharpLink added 205,000 ETH worth $64M, and BitMine now holds over $3.2B in ETH, while specialized funds control 1.6% of the total supply.
- Only 27% of ETH remains liquid; with over 32M staked and fewer coins on exchanges, analysts warn of a potential operational supply crunch within six months.
Ethereum has climbed back above $3,800, fueled by a combination of institutional accumulation, tightening liquid supply, and a more favorable regulatory environment.
The 7% gain over the past 24 hours coincides with a growing trend of large firms adding ETH to their balance sheets as a productive asset. SharpLink Gaming purchased 205,000 ETH for around $64 million, while BitMine Immersion has accumulated over $3.2 billion worth of Ethereum. At the same time, specialized funds now hold roughly 1.6% of the circulating supply.
Are We Heading Toward a Supply Crunch?
Ethereum holds a clear advantage over Bitcoin: it offers yield through staking. That appeal is attracting companies looking to generate returns from digital asset-based treasuries. With estimated annual yields between 3% and 5%, ETH is increasingly being viewed as an income-generating asset without sacrificing liquidity.
Meanwhile, the amount of ETH held on exchanges has dropped to levels not seen since 2016. Recent data shows only 18.8 million coins remain on centralized platforms, and Binance alone reduced its reserves by 10% in July. Simultaneously, over 32 million ETH is now staked, and spot ETF purchases continue to rise. As a result, only 27% of ETH is currently liquid. Analysts warn that if this pace continues, the market could face an operational shortage in less than six months.
Outlook for Ethereum
Regulatory developments have also helped reinforce investor confidence. The SEC clarified its position on decentralized staking, which benefits protocols like Lido that account for about 30% of staked ETH. While centralized services remain under scrutiny, the update was broadly seen as a major relief for the DeFi ecosystem.
From a technical standpoint, Ethereum is approaching a key resistance level at $4,100, which has already rejected the price twice in recent months. Indicators suggest continued short-term strength, with the RSI breaking above descending trendlines and bullish signals also emerging on the ETH/BTC pair. A potential bull flag on weekly charts further supports expectations of a breakout if buying pressure remains.
