ETH has just witnessed one of the largest stablecoin supply increases—often signaling an increase in network utility.
The long-term outlook for investors in ETH has surged; meanwhile, spot traders continue to liquidate their positions.
Despite the positive outlook for Ethereum (ETH), the price of ETH has dropped by 1.75%, extending the downward trend over the past week in the cryptocurrency market.
Analytical data shows that the general sentiment around ETH remains optimistic. However, this asset continues to face adjustment pressure—especially from spot trades going against the general expectations of the cryptocurrency market.
Stablecoin supply explosion—What does it mean for ETH?
In the past 24 hours, the Ethereum ecosystem has recorded one of the largest stablecoin capital flows across the entire cryptocurrency market.
Approximately 1.4 billion USD in stablecoins has flowed into the Ethereum network, an extremely impressive figure. Such strong momentum indicates an increasing demand for stablecoins from both users and organizations holding ETH.
Source: Artemis
This means that the level of activity in the ETH network continues to increase, leading to a growing demand for ETH storage in wallets—signaling a strong accumulation trend.
According to Artemis, the Bridged Netflow indicator also recorded a spike in the last 24 hours.
Bridged Netflow measures the amount of assets moving from other blockchains to Ethereum. As of the time of writing, 114,000 USD has shifted into ETH—primarily from SOL holders taking profits.
The growth of bridged inflow, especially from large holders in the cryptocurrency market, proves that this community is placing more hope in ETH than in competing networks.
If this trend continues, it is highly likely that capital will continue to flow strongly into ETH, driving prices up and attracting more attention from institutional investors.
Long-term outlook for ETH: Momentum and risks
Notably, the surge in stablecoin supply simultaneously boosts the Total Value Locked (TVL) across Ethereum protocols significantly.
TVL reflects the total amount of liquidity locked in DeFi protocols—a measure of the community's attraction and trust in the Ethereum cryptocurrency infrastructure.
Source: DeFiLlama
At the time of the update, TVL had increased by 3.46%, from 83.674 billion USD to 86.558 billion USD. This translates to a growth of 2.88 billion USD in a short period.
This further reinforces the optimistic view of ETH. Accordingly, the amount of ETH locked in protocols is increasingly large, contributing to a reduction in circulating supply and creating upward price momentum for this cryptocurrency asset.
However, data from TinTucBitcoin indicates that the main reason putting pressure on the market is the increase in spot selling from individual investors in recent times.
As of the time of recording, spot traders have liquidated 61 million USD in ETH—a not insignificant amount for short-term capital flows.
Source: CoinGlass
This move acts as a measure to preserve capital flow, predicting the potential for ETH to continue adjusting—the direct factor driving prices lower.
If the spot selling continues, downward pressure will be maintained, potentially pushing ETH to deeper support zones in the short term.
Technical analysis of ETH chart
ETH has been in a sideways accumulation state since May 13—nearly a month without breaking the range.
Typically, such inflows reflect the accumulation strategy of whales before a market breakout occurs, opening up a long-term upward cycle for ETH.
Source: Trading View
However, in the short term, ETH is facing two scenarios: either it bounces from the current support to test the upper resistance area—the decisive point will be established depending on the momentum of FOMO capital flow.
Conversely, if it fails, ETH could retreat deep into technical support zones—the dashed line or the lower edge of the sideways channel.
Specifically, the next direction of ETH will completely depend on the push from the flow of capital in the cryptocurrency market in the short and medium term.
Source: https://tintucbitcoin.com/stablecoin-14-ty-usd-do-ve-ethereum/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news in the cryptocurrency market and not miss any important information!
