Perhaps the most bullish sign is a shrinking supply of Ethereum present on exchanges. The number dropped nearly 50% since its peak in July 2021, indicating that investors move Ethereum into off-chain crypto wallets or lock them into DeFi products like staking, lending, and borrowing to earn more on their ETH. The decrease can be attributed to the pending Ethereum Merge, which will move the network from the original proof-of-work model to a more energy-efficient proof-of-stake consensus.
Additionally, metric shows that crypto whales holding 10,000 to 100,000 ETH started accumulating Ethereum after its March 13 crash. It suggests that large investors remain optimistic about Ethereum prospects.