Ethereum Surges 7% to $2,800 as Institutional Interest Rises

Ethereum [ETH] has recently surpassed the $2,800 mark for the first time in weeks, experiencing a 7% increase in the last 24 hours. This surge suggests a growing number of active investors in the market, which could lead to further price increases. Currently, ETH is experiencing a significant surge in market liquidity, with no immediate resistance levels ahead, potentially allowing the asset to reach a new high of $3,000.

According to Glassnode, there has been a notable spike in Open Interest (OI) on the Chicago Mercantile Exchange (CME), measured by the 7-day Simple Moving Average (SMA). The OI recently reached $3.27 billion, its highest level since February 2, 2025. This increase indicates a growing inflow of institutional capital into the market. Additionally, institutional traders have been active, accumulating $211 million worth of ETH in the past day alone, marking the largest single-day purchase since June 6.

With growing bullish pressure, particularly from institutional players, ETH faces little resistance ahead. According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP), there are only two resistance levels visible, with sell volume at 3.44 million and 3.42 million ETH. These resistance volumes are relatively low and fall between $3,222.13 and $4,816.30, suggesting that ETH could continue its upward rally with limited corrections, especially if liquidity keeps rising. Retail investors also appear to be holding their ETH rather than sending it to exchanges, with the number of Depositing Addresses on centralized exchanges dropping to 23,000 and continuing to trend downward. This behavior implies fewer funds are being sent to exchanges, as investors opt for self-custody, a historically bullish signal.

However, not all market indicators are currently bullish. One area that signals caution is the Exchange Reserve metric, which is rising despite the broader uptrend. Over the past day, the total amount of ETH held on centralized exchanges has increased to 18.9 million. A continued rise in exchange balances could indicate an incoming demand squeeze, a situation where supply surpasses demand, potentially leading to price drops. However, with depositing addresses still declining, the risk of a demand squeeze appears minimal for now. Currently, increased buying activity—particularly from institutional investors—remains a major force in sustaining ETH’s upward trajectory and suppressing the impact of growing reserves.