Analysis: ETH fundamentals strengthen despite range-bound price

While Ethereum's (ETH) price remains range-bound, its on-chain data indicates a structural shift toward reduced supply and recovering demand, according to an analysis by XWIN Research Japan posted on CryptoQuant. The analysis noted that the amount of ETH on exchanges has plummeted to 16.2 million, the lowest level since 2016, while approximately 37 million ETH is currently staked. This creates an environment with limited selling pressure where new demand could lead to significant price increases. Simultaneously, the number of active network addresses is on the rise, and lower gas fees following the implementation of EIP-4844 are stimulating transaction activity. In the derivatives market, rebuilding open interest (OI) suggests new capital is flowing in. Furthermore, the launch of spot staking ETFs and clearer guidelines from U.S. regulators have reduced uncertainty, improving access for institutional investors. XWIN Research Japan concluded that Ethereum is being influenced by a combination of constrained supply, growing demand, and an improved market structure, suggesting the current phase may not be temporary but rather the initial stage of a larger upward trend.