I just reviewed Ethereum data and something interesting is happening. The ultra sound money narrative that was so popular some time ago is fading — total supply is at its maximum and staking has decreased, but the technical numbers tell a completely different story.

Look at this: the realized price of ETH is at $2,200 while the market is pricing it at $2,060. This means that the average cost basis of those who bought ETH is almost equal to the current price. The MVRV ratio is just above 1, suggesting that Ethereum might be undervalued. Additionally, long-term holders are accumulating nonstop, similar to what happened with Bitcoin.

What caught my attention most is that large whales bought more than 600,000 ETH last week, right when the price was falling. BlackRock, Cumberland, and other institutional giants continue filling their wallets. That’s a strong sign of confidence.

In the latest data, 9.63 million ETH (around $26 billion) are in exchange wallets, the lowest level since August 2024. When assets leave exchanges, it typically means people are holding rather than selling. There’s also less selling pressure in the futures market.

The ultra sound money narrative may have lost weight, but technical indicators and institutional behavior paint a different picture. If Bitcoin stays firm, Ethereum could surprise. CoinShares reported that Ethereum led crypto inflows this week with nearly $800 million, almost double Bitcoin. That’s quite significant.