5 million ETH locked by institutions, Ethereum's downside potential is compressed. Is reaching a new high inevitable?

【CoinPush】An interesting perspective worth pondering. Without the involvement of large digital asset management firms, Ethereum's current cycle might have been stuck in the $1,400-$4,800 range for a long time, waiting for fundamental changes to break the deadlock. But a key turning point has emerged—these institutions have bought approximately 5 million ETH and are holding them long-term, directly changing the entire market supply landscape.

Looking at the current data makes it clear: Ethereum's exchange reserve ratio is even lower than Bitcoin's. What does this mean? Many ETH are locked in institutions, reducing the circulating supply, and naturally compressing the downside potential. So even in a bear market, it's almost impossible for Ethereum to drop below $2,000.

Currently, Ethereum's trajectory is somewhat similar to Bitcoin's from January 2023 to November 2024—a structured institutional upward channel. As long as the US stock market doesn't experience extreme volatility, breaking new highs for Ethereum is highly probable. Those still advocating that “Ethereum will fall back below $2,000” are less analyzing and more misreading the market structure changes.