Analysis: Ethereum bullish outlook builds on supply squeeze

Ethereum (ETH) is entering a strong bullish phase as supply tightens, according to XWIN Research Japan, a CryptoQuant contributor. Exchange balances have fallen sharply since late July, with daily withdrawals repeatedly topping 100,000 ETH. One of the largest moves was 92,899 ETH ($412 million) withdrawn from Kraken over four days. U.S. spot ETH ETFs also posted record weekly inflows of $2.85 billion, led by BlackRock’s $2.32 billion. Companies such as SharpLink Gaming and Bitmine have added hundreds of thousands of ETH to their treasuries. With only 18.4 million ETH left on exchanges, analysts warn liquidity is drying up even as institutional and ETF demand continues to rise. While short-term pullbacks are possible, the long-term trend remains bullish as supply continues to tighten.