Ethereum Surges Past $4,000 as Smart Money Drains Exchange Reserves and Tightens Supply

I observe that Ethereum (ETH) has surpassed the $4,000 threshold for the first time since last December, signaling a robust bullish resurgence. After a period characterized by high volatility and market uncertainty, the recent price surge indicates that buyers are regaining control, driven by improved market sentiment, strong fundamentals, and increased institutional interest in Ethereum as a leading smart contract platform. On-chain data from CryptoQuant reveals a continuous decline in ETH reserves on exchanges, currently at 18.8 million, a historic low that underscores a significant shift of ETH from exchanges to private holdings. This persistent outflow suggests that institutional investors and large holders, often referred to as 'smart money,' are actively accumulating ETH off-market, creating a supply squeeze. With growing demand in sectors such as DeFi, RWA, and staking, the conditions are aligning for a potential supply-side shock, which could further propel prices upward.