Ethereum (ETH) Shows Renewed Strength Following the Recent Pectra Upgrade, Data Signals $3.8B Inflows

Ethereum has shown renewed strength following the recent Pectra upgrade, with on-chain data signaling a $3.8B capital inflow.

Recent data from Glassnode shows that Ethereum (ETH) has displayed remarkable resilience in recovering its on-chain fundamentals following the recent Pectra upgrade.

Since the #Pectra upgrade, #ETH’s Realized Cap – the total capital invested in the asset at the time it last moved on-chain – has surged from $240.8B (May 7) to $244.6B (May 19).

That's a +$3.8B (+1.6%) rise and continues a 3-month recovery from lows of $234.3B in early February.

Between May 7 and May 19 alone, Ethereum’s Realized Capitalization increased from $240.8 billion to $244.6 billion.

This $3.8 billion increment showcases a 1.6% surge and, more importantly, marks the termination of a three-month-long downtrend that commenced in early February.

The uptick in Realized Cap is often viewed as an indicator of renewed investor confidence, especially among long-term holders.

It signals that capital is being invested in ETH at realized price levels, implying potential accumulation and a shift away from recent bearishcl trends.

As Ethereum regains upward momentum on-chain, this shift could serve as the foundation for more sustainable growth, provided short-term market volatility doesn’t derail it.

Overheating At $2.5K Resistance

While Ethereum’s on-chain fundamentals are showing signs of recovery, short-term market indicators suggest brewing tension as the asset approaches the $2,500 resistance level.

According to CryptoQuant’s post, ETH is entering an “overheating” phase, marked by a sharp surge in trading volume across exchanges, and a short-term correction before the breakout is possible.

A bubble chart by the analytics platform visualizes this dynamic, with volume spikes signaling heightened market activity, which is mainly being driven by profit-taking.

Ethereum Market Overheats: Potential Short-Term Correction Before Breakout

"Ethereum’s approach to the critical $2.5K resistance level has led to overheating, characterised by a significant surge in trading volume... which is being driven by profit-taking."

By @ShayanBTC7

The $2.5K level carries psychological weight for traders and coincides with what analysts describe as a zone of “resting supply”—where sellers are more likely to unload their holdings.

“The overheated condition over the last days may point to a likely short-term correction as the market cools down, paving the time for renewed accumulation,” the CryptoQuant’s post adds.

Historically, such volume-driven rallies into resistance zones often precede brief corrections, as overheated conditions ultimately force the market to cool down.

ETH Supply Shock Predictions

In other news, a potential Ethereum supply shock may be brewing, according to new data shared by market analysts.

The latest chart from Santiment shows that the percentage of ETH held on centralized exchanges has now reached its lowest point ever, while Bitcoin’s (BTC) ratio is at its lowest since November 2018.

This signals that investors are increasingly transferring their coins into self-custody, a move frequently associated with long-term investment behavior.

With less ETH in exchange wallets, it sets the stage for a classic supply shock scenario. If demand increases while exchange liquidity remains low, it could exert upward pressure on prices. Traders will be closely monitoring this trend as a potential catalyst for Ethereum’s next major price movement.