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Ethereum Recovery Signals Institutional Interest

Ethereum Recovery Signals Institutional Interest

Abby Richards • May 11, 2025

Key Takeaways

Ethereum is currently showing strong market activity. The Total Value Locked (TVL) has risen to over 53% — a level last seen in March. At the same time, exchange balances are decreasing while large wallets are accumulating ETH. These developments point to growing institutional interest and potential price gains. However, not all indicators are clearly positive.

TVL Dominance Reaches New High

TVL indicates how much capital is locked in decentralized finance (DeFi) applications. Ethereum currently holds a share of over 53%, the highest level in several months. A rising TVL dominance means more capital is flowing into the Ethereum ecosystem — a sign of trust and increasing usage.

Large Wallets Moving ETH – Institutional Interest?

In recent days, two large transactions were recorded: 23,844 ETH were sent to Coinbase Institutional, and another 58,430 ETH were transferred between anonymous wallets. Such movements indicate accumulation by larger market participants. If institutional investors are entering, this could support long-term price stability.

Decline in Exchange Reserves Eases Market Pressure

Exchange reserves — the amount of ETH held on centralized exchanges — fell by 1.1% to 19.25 million ETH. At the same time, net flows dropped by 8.26%, indicating an outflow of over 213,000 ETH. With less ETH available on exchanges, selling pressure decreases. This can support the price or even unlock upward potential.

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MVRV Indicator Signals Accumulation Phase

The MVRV (Market Value to Realized Value) Long/Short Difference currently stands at -40.91%. Historically, such low values indicate accumulation phases. This means investors are holding their coins despite low market prices — a sign of long-term confidence. In the past, such phases were often followed by price increases.

Less Short-Term Speculation

The so-called 0d–1d HODL Wave — a measure of short-term holding activity — dropped to 0.114. This means fewer ETH were moved within 24 hours. Short-term traders appear to be pulling back. As a result, volatility decreases, but so does short-term buying momentum.

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Decline in Burned ETH Fees

Only 42.75% of transaction fees paid over the past seven days were burned. This is below the 90-day average of 35.03%. A lower burn rate weakens Ethereum’s deflationary effect. Nevertheless, network usage remains stable — a positive signal for the platform’s long-term relevance.

Technical Analysis: Trend Reversal Confirmed

Ethereum has broken through a downward trendline that had been in place for months. The price then rose to USD 2,365. The RSI (Relative Strength Index) is at 81.90 — a sign of short-term overbought conditions. However, momentum remains strong. As long as the price stays above USD 1,761, a rise to USD 2,526 is possible.

Our Assessment

Ethereum is currently showing several signs that point to a potential recovery. Rising TVL dominance, declining exchange reserves, and increased activity from large wallets suggest growing confidence — particularly from institutional players. At the same time, the drop in the burn rate and declining short-term holder activity call for caution.

Whether Ethereum truly enters a new upward phase depends on continued interest in the network and whether current support levels hold. For long-term investors, now could be a favourable time to enter — provided their risk profile aligns.

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Play with Ethereum now

Profile Ethereum
Symbol	ETH
Coin type	Alt Coin
Transaction Speed	Medium
Pros	Second largest cryptocurrency Accepted in many casinos High transaction speed
Cons	Partial bugs in smart contracts
Further practical applications
Price	2489.84
24h %	3.10 %
7d %	35.29 %
30d %	60.32 %
60d %	30.18 %
1y %	-14.85 %
Market Cap	$300,477,631,167.00
Official Links	Website \| Source Code
Socials	Reddit \| X