Ethereum Buying Frenzy Sparks Talk of Looming Supply Shock

Ethereum Buying Frenzy Sparks Talk of Looming Supply Shock

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ETH is vanishing from exchanges as treasury firms skip the ETF queue and start hoarding like it’s 2017 all over again.

Key Highlights:

• Over $1.6 billion in Ethereum quietly hoarded by treasury firms, with more coming.

• Exchange reserves are falling fast, setting the stage for a potential ETH supply shock.

Paradisers! While retail investors argue over gas fees and NFTs, corporate treasuries are playing a different game, and they’re playing it fast. 

According to the ParadiseTeam research, at least ten institutional players have scooped up over 550,000 ETH in the last month alone, a tidy $1.65 billion. And no, they’re not flipping it on the next pump. They’re locking it up in staking contracts, DeFi vaults, and long-term cold storage like it’s Fort Knox 2.0.

Every week new players are entering, and existing ones are increasing their buying targets. If this momentum keeps up, the next $2 billion could disappear from the market before the end of August.

Spot ETFs Join the Party, But They’re Not the Main Act

While most headlines are focused on Ethereum spot ETFs (which have now seen nine straight weeks of inflows), those vehicles are actually the sideshow. Nearly $1 billion flowed in just last week, and yet treasury firms are the real force vacuuming ETH off the market, and they don’t have redemption pressure. They’re not here to trade. They’re here to own.

In fact, exchange reserves have dropped so dramatically that even Tether’s Paolo Ardoino would struggle to find liquidity if he wanted to swap.

Regulatory Tailwinds May Accelerate the Crunch

The timing couldn’t be better. “Crypto Week” in D.C. is underway, with the GENIUS Act and two other landmark bills inching toward approval. Regulatory clarity, or even just the illusion of it, is like rocket fuel for corporate adoption.

As ETH floats near $3,200, it’s not difficult to imagine the token re-pricing higher once the market realizes how little is actually available. If this were oil, we’d call it a “strategic supply reduction.” But since it’s crypto, it’s just whales being whales.

MCP News Private will follow up with detailed breakdowns of how this Ethereum squeeze could evolve, and what you should be doing before prices adjust. For just $3/month, you’ll know what the whales know, before it hits the headlines. Also, stay active on our YouTube Stream channel.

ETH isn’t mooning, it’s vanishing. When supply dies quietly, prices scream loudly.

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