ETH Nears Critical Resistance as Supply Drops, ETF Accumulation Grows, and BTC Dominance Weakens
Ethereum Gains Momentum as Bitcoin Dominance Declines
Ethereum is exhibiting strong short-term momentum, outpacing Bitcoin in recent weeks. This shift is attributed to increasing ETF inflows, reduced exchange supply, and heightened network activity.
ETF Demand and On-Chain Growth Bolster Ethereum’s Outlook
Since June, Ethereum spot ETFs and treasury vehicles have each absorbed approximately 1.6% of the total ETH supply. Concurrently, Ethereum’s transaction volume is approaching all-time highs, indicating robust network usage.
Supply Constraints and Institutional Interest Drive Price Potential
The supply of Ethereum on exchanges continues to decline, signaling accumulation by institutional investors. Additionally, more ETH is being locked in staking and burns, creating upward pressure on the price.
Legislative Support Enhances Ethereum’s Prospects
Recent legislative developments in the U.S. have advanced tokenization and stablecoin frameworks, further supporting Ethereum’s growth trajectory.
Current Market Performance
As of August 7, 2025, Ethereum is trading at $3,818.91, reflecting a 5.38% increase over the past 24 hours. The intraday high reached $3,821.59, with a low of $3,583.67.
Bitcoin is currently priced at $116,661.00, up 2.09% from the previous close. The intraday high was $116,747.00, and the low was $113,851.00.
Conclusion
Ethereum’s combination of increasing ETF inflows, decreasing supply, and supportive legislative developments positions it favorably for a potential breakout. Investors are closely monitoring these factors as Ethereum approaches critical resistance levels.
