Ethereum, the second-largest cryptocurrency by market capitalization, is currently experiencing a unique trend known as "dual momentum," as highlighted by analysts at cryptoquant.com. This phenomenon is characterized by a combination of increased institutional interest and record-breaking on-chain activity.

According to a recent report by Cryptoquant, Ethereum's market dynamics are showing signs of a strong uptrend. The analysis points out that institutional investors have been steadily increasing their holdings of Ethereum since April 2025. The total amount of Ethereum held by funds has doubled during this period, reaching approximately 6.5 million to 6.7 million ETH. This significant accumulation by institutional players indicates a growing confidence in Ethereum's long-term value proposition.

In addition to the rise in institutional positioning, Ethereum is also witnessing a surge in on-chain activity. On-chain metrics refer to the data recorded on the Ethereum blockchain, reflecting transactions, smart contract interactions, and other activities taking place within the network. Cryptoquant's report highlights that Ethereum's on-chain usage has reached record levels, indicating a high level of network utilization and user engagement.

One key observation from the analysis is the lower selling pressure on Ethereum despite the increased institutional accumulation and heightened on-chain activity. This suggests that market participants are holding onto their Ethereum holdings rather than selling them, which could contribute to a supply shortage and potentially drive up prices in the future.

The combination of strong institutional demand and robust on-chain fundamentals paints a positive outlook for Ethereum's price trajectory. As more institutional investors allocate capital to Ethereum and the network continues to see high levels of activity, the overall market sentiment towards the cryptocurrency remains bullish.

Furthermore, Ethereum's ongoing transition to a proof-of-stake consensus mechanism through the Ethereum 2.0 upgrade is also a significant factor driving investor interest. This upgrade aims to improve the scalability, security, and sustainability of the Ethereum network, making it more attractive to both institutional and retail investors.

Overall, the dual momentum observed in Ethereum's market dynamics underscores the cryptocurrency's growing relevance in the digital asset space. With a combination of institutional support, record on-chain usage, and ongoing network upgrades, Ethereum is well-positioned to maintain its status as a leading blockchain platform and potentially see further price appreciation in the future.

Source: https://news.bitcoin.com/cryptoquant-maps-ethereums-next-test-5-2k-realized-price-band/