The tides are changing for Ethereum [ETH]. Larger investors may be positioning differently, while token supply continues to shrink.
Traders have been showing greater interest in ETH again, so there’s certainly a fair amount of hope too.
Smart money flow diverging from price
According to data from Alphractal, ETH’s Smart Money Flow Index has been diverging from the price! This metric tracks how smart-money positioning is behaving compared to market flows.
At the time of writing, it looked a bit familiar.
Something similar took place a few weeks before ETH’s big move in early 2024. That does not mean the same rally will repeat itself, but it does make the current state worth watching.
The price didn’t seem to fully reflect the change in positioning either.
Additionally, AMBCrypto had previously reported that Ethereum’s stablecoin supply climbed to a record $180 billion, while tokenized fund assets on the network crossed $22.5 billion. This implied that the network is leading the tokenized asset market as well.
Reserves drop, OI rises
According to CryptoQuant, ETH exchange reserves fell to around 14.9 million ETH at press time. The numbers have been on a downtrend from the 20-21 million ETH range seen through much of 2024 and 2025.
Put simply, there is less immediately available supply of Ethereum for selling.
At the same time, Ethereum’s Open interest recovered to around $15.7 billion across exchanges. At the time of writing, it was still far below the late-2025 peak above $30 billion. However, it seemed to be moving higher again after the reset earlier this year.
Consider them together – Falling reserves mean lesser supply, while rising Open Interest means traders are adding exposure again. This “scarcity loop” will help bigger moves if demand goes up further.
For now, ETH has not broken into a confirmed uptrend yet. However, with the numbers adding up, Ethereum might just be stronger than it was a few months ago.
Final Summary
Ethereum exchange reserves fell to around 14.9M ETH on the charts.
Traders have been steadily rebuilding exposure to ETH again.
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