Ethereum is showing renewed strength as both technical and on-chain indicators align for a potential breakout. One big reason for this optimism is the jump in Ethereum’s Realized Cap since the Pectra upgrade went live earlier this month; this key metric surged by $3.8 billion. Data from Glassnode (also highlighted on their X account) shows the Realized Cap rose from $240.8 billion on May 7 to $244.6 billion by May 19, a notable 1.6% increase. Importantly, this rise also breaks a three-month downtrend that began in February. Such a shift in market momentum often indicates fresh capital is flowing back into Ethereum, which reinforces its long-term value picture. Since the #Pectra upgrade, #ETH’s Realized Cap – representing the total capital stored in the asset – has surged from $240.8B (May 7) to $244.6B (May 19).That's a +$3.8B (+1.6%) rise, reversing a 3-month downtrend since early February. pic.twitter.com/5qlbLGyIJ8 — glassnode (@glassnode) May 20, 2025 ETH Supply on Exchanges Plunges to Historic Low, Santiment Reports A critical on-chain development is Ethereum’s declining exchange supply. According to analytics firm Santiment, less than 4.9% of the total ETH supply is currently on centralized exchanges. This is the lowest in Ethereum’s ten-year history and signals increased investor confidence in holding rather than selling. Similarly, Bitcoin’s exchange supply has fallen to 7.1%, the lowest since November 2018. Over the past five years, 1.7 million BTC and 15.3 million ETH have left exchanges, suggesting a macro trend toward self-custody and long-term holding. Abraxas Capital Ramps Up ETH Buying, Adds 46K ETH Worth $115 Million Moreover, Lookonchain data reveals that Abraxas Capital resumed aggressive accumulation after a short pause. The firm added 46,295 ETH worth $115.3 million recently. Since May 7, Abraxas has acquired 350,703 ETH for $837 million at an average price of $2,386. After a 3-day break, Abraxas Capital accumulated 46,295 $ETH($115.3M) again.Since May 7, Abraxas Capital has accumulated 350,703 $ETH($837M) at an average price of $2,386, with an unrealized profit of $50M.https://t.co/vZTxLPd2zqhttps://t.co/RsUi9BoVda pic.twitter.com/ZVQW0FMyZg — Lookonchain (@lookonchain) May 20, 2025 With ETH now trading at $2,487, the firm holds an estimated $50 million in unrealized profits. This level of institutional buying further validates the growing bullish sentiment in the market. Related: Ethereum (ETH) Shows “Golden Cross”; Analysts See $3,000 Price Target Ethereum Golden Cross Forms; Analyst Eyes Rally, Targets $3.8K-$5K Technical indicators are also flashing green. Crypto analyst Crypto Patel highlighted a Golden Cross on the 12-hour Ethereum chart. The 50 EMA has crossed above the 200 EMA, a pattern typically viewed as bullish after a prolonged downtrend. The last time Ethereum experienced a Death Cross, it plunged 57%. Hence, this opposite crossover may signal the beginning of a significant rally. Source: X Related: Is Ethereum Below $2,400 a “Steal”? Analyst Predicts Surge Toward All-Time High Support is holding firm around $2,200, while resistance appears near $2,800. If momentum continues, Ethereum could target levels between $3,800 and $5,000 in the coming weeks. The price of ETH as of press time sits at $2,487.33 with a 24-hour gain of 3.58%, despite a slight 1% decline over the past week. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.