Ethereum ($ETH) selling pressure from miners has dropped to near historic lows, and two CryptoQuant analysts say this could create a favorable setup for a strong price recovery.
The on-chain data comes as Ethereum trades at $1,912, down 0.65% over the past week but up 21% over the last month, according to CoinMarketCap data. Despite the recent rebound, $ETH remains 49.8% below its price from a year ago.
Ethereum Miner Selling Pressure Hits Near-Record Lows
CryptoQuant analyst PelinayPA said Ethereum miner transfers to Binance have fallen close to their lowest levels in the past year. The decline points to a sharp drop in miner-driven selling pressure.
The large $ETH transfer spikes seen in previous months have mostly disappeared. Transfers briefly increased in June but fell sharply afterward, returning to near-baseline levels by the end of July.
Binance remains the world’s largest venue for spot and futures Ethereum trading. Because of this, miner deposits to the exchange are a key signal of potential selling activity.
The current decline suggests miners are adding little immediate selling pressure to the market.
PelinayPA noted that miners are a natural source of $ETH supply. When fewer coins move to exchanges, there is less $ETH immediately available for sale. This can make it easier for buyers to absorb available liquidity.
However, the analyst warned that lower supply alone is not enough to push prices higher. Reduced miner selling may limit downside risks, but Ethereum remains range-bound because demand has not accelerated.
According to PelinayPA, a new wave of institutional buying could provide the catalyst for Ethereum’s next major upside move.
Over the past day, the Ethereum ETF sold $18.65 million worth of $ETH but had accumulated $23.76 million two days earlier.
Ethereum Regains Strength Against Bitcoin
Meanwhile, CryptoQuant analyst CryptoZeno said Ethereum is beginning to recover relative strength against Bitcoin after months of underperformance. However, a sustained recovery will depend on whether capital begins rotating back into $ETH.
The analyst pointed to Ethereum’s $ETH/$BTC Market Value to Realized Value (MVRV) ratio. The metric has recovered from historically discounted levels and moved above its long-term average.
Similar recoveries in previous market cycles have signaled a shift from capitulation toward improving Ethereum performance relative to Bitcoin.
CryptoZeno also highlighted better exchange flow trends. The $ETH/$BTC Exchange Inflows Ratio has fallen significantly from levels seen during earlier distribution phases.
This suggests Ethereum holders are moving fewer coins onto exchanges, reducing potential near-term selling pressure.
Capital Rotation Could Drive the Next Move
The analyst added that weekly spot trading data shows Bitcoin still dominates overall activity. However, the $ETH/$BTC trading volume ratio has stopped falling and is beginning to stabilize.
Historically, improvements in this ratio have often come before stronger Ethereum performance. This typically happens as institutional and retail investors expand their focus beyond Bitcoin.
Despite these positive signals, CryptoZeno said the market has not yet entered a full altcoin leadership phase.
Instead, Ethereum is rebuilding on a stronger on-chain foundation. A sustained rally will require continued capital inflows, limited exchange selling, and stronger spot market participation.
Essentially, both analysts highlighted the same key factor: Ethereum’s supply-side conditions have improved significantly, but stronger institutional demand may be needed to trigger the cryptocurrency’s next sustained upward move. In this scenario, $ETH holders could look at prices beyond $2,000.
