Ethereum’s price recently reached its 2021 peak before facing headwinds from the US economy. Despite this, analysts believe the bullish trend will continue fueled by heavy institutional investments and a shrinking supply of ETH. XWIN Research points out that ETH reserves on exchanges have significantly decreased since late July, with daily withdrawals often exceeding 100,000 ETH. A record-breaking withdrawal of nearly 93,000 ETH ($412 million) from Kraken in just one day highlights this trend. Spot Ethereum ETFs are also driving the rally, seeing a record $2.85 billion in weekly inflows. This influx is further impacting already low exchange balances with only 18.4 million ETH left. David Duong, Coinbase’s Head of Research, emphasizes the crucial role of Ethereum treasury companies in accumulating large holdings, having purchased roughly 795,000 ETH worth $3.6 billion since August. This trend could fuel further price growth and push the market towards new all-time highs. The information provided is for informational purposes only and should not be considered financial advice.