Ethereum is exhibiting three bullish on-chain indicators as exchange supply decreases, priority fees rise, and stablecoin reserves on Binance show signs of recovery. Currently, the asset trades near $2,678, marking an 8% increase over the past week. This follows a rally that saw prices climb from approximately $1,900 to $2,800 before a subsequent pullback.
Data from Santiment indicates that only 3.49% of the total Ethereum supply remains on tracked exchanges, with 1.16% of the supply moving off these platforms since June 1. This reduction in exchange-held coins is attributed to staking and decentralized finance activities, with roughly 35% of ETH staked and $53 billion locked in DeFi. BitMine currently holds 5.98 million ETH, with 85% of its holdings staked.
On the demand side, priority fees surged by 26.74% in a single day, reaching approximately $464,000, while gas usage grew by only 0.26% to 217.1 billion. With 7,147 blocks mined, analysts suggest that users are paying higher fees for faster processing, indicating sustained demand for block space. This competition for capacity persists despite recent price fluctuations.
Binance has seen its ERC-20 stablecoin reserves recover to approximately $43.8 billion from an August low of $42 billion, though this remains below the year-to-date peak of $49 billion. Analysts note that these reserves represent potential buying power for crypto assets. However, they caution that thin exchange supply does not guarantee price increases and reserves may be used for derivatives.
