Ethereum (ETH) Price: Raoul Pal Predicts Explosion as On-Chain Metrics Turn Bullish

TLDR

ETH has seen $3.8 billion in capital inflows since the Pectra upgrade on May 7th Ethereum’s supply on exchanges has hit an all-time low below 4.9% Realized Cap has climbed to $244.6 billion, reversing a 3-month downtrend Price has surged from $1,800 to around $2,500 following the upgrade Whale wallets have accumulated over 450,000 ETH in the last month

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Ethereum has experienced a remarkable price surge following its recent Pectra upgrade, with on-chain data showing strong buying pressure and decreasing exchange supply.

The second-largest cryptocurrency by market cap has rallied from $1,800 to around $2,500, backed by substantial capital inflows.

The Pectra upgrade, which went live on May 7th, introduced several improvements to the Ethereum network. These include staking enhancements and increased transaction capacity, which appear to have renewed investor confidence in the digital asset.

On-chain data from Glassnode shows that Ethereum’s Realized Cap has climbed to $244.6 billion. This metric calculates the total value by using the last transaction price for each token in circulation.

Prior to the upgrade, Ethereum had experienced three months of capital outflows. This trend reversed after Pectra, with approximately $3.8 billion flowing into ETH in the days following the upgrade.

Ethereum Price on CoinGecko

Declining Exchange Supply

Another key metric supporting Ethereum’s bullish outlook is the record low supply on exchanges. According to Santiment data, just 4.893% of all ETH is now held on trading platforms. This marks the lowest level in Ethereum’s history.

Over the past five years, more than 15.3 million ETH have been withdrawn from exchanges. This trend can be partially attributed to the growing popularity of ETH staking, especially since the Ethereum 2.0 upgrade.

The declining exchange supply has important implications for price action. With less ETH available for spot selling, there’s reduced sell pressure during market corrections.

This supply contraction comes at a time when large investors are accumulating. Data from CryptoQuant shows that whale wallets holding between 10,000 and 100,000 ETH have added over 450,000 ETH in the last month alone.

These accumulation patterns have caught the attention of macro investor Raoul Pal, who recently stated,

“I think ETH is going to shock people probably going forward. It’s going to explode.”

Despite these bullish indicators, some metrics suggest mixed signals. Glassnode notes that new and resurrected wallet addresses have decreased compared to year-to-date values (-1.8% and -8.4% respectively).

However, the rate at which previously active addresses go dormant has also decreased (-8.5%). This suggests that while the upgrade may not be attracting many new users, it has increased engagement among existing Ethereum users.

Technical analysis shows a Golden Cross confirmation on ETH’s 12-hour chart. Traders are now watching the $2,800 resistance level, with a successful breakout potentially opening the path to $3,000 and beyond.

ETH is currently trading around $2,500, down over 4% in the last week. Despite this short-term pullback, the combination of decreasing exchange supply, increasing whale accumulation, and positive technical indicators suggests a favorable outlook for Ethereum’s price in the coming weeks.

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