ETH Continues to Rally Amidst Institutional Demand and Exchange Supply Drop

Ether rallied to $2,650.18, extending its gains as institutional demand surged and exchange supply dropped to a multi-year low. The asset remains above $2,600, supported by $321 million in fresh inflows into ether-linked investment products. Analysts highlight a drop in ETH held on centralized exchanges, suggesting a shift toward self-custody and accumulation. Key resistance at $2,550 was breached, and support is forming around $2,610-$2,615.

Ethereum (ETH) has experienced a significant rally, reaching $2,650.18 on June 5, 2025, as institutional demand surged and exchange supply dropped to a multi-year low. The asset's price remains above $2,600, supported by $321 million in fresh inflows into ether-linked investment products. Analysts highlight a drop in ETH held on centralized exchanges, suggesting a shift toward self-custody and accumulation. Key resistance at $2,550 was breached, and support is forming around $2,610-$2,615.

The recent price action reflects a broader trend of increased institutional interest in ETH, driven by its robust ecosystem and potential for future growth. The drop in ETH held on centralized exchanges, from 25% in 2022 to 15% in 2025, indicates a growing preference for self-custody solutions among investors [1].

Moreover, the rise in ether-linked investment products signals a growing appetite for ETH among institutional investors. These products, such as staking pools and ETH-linked derivatives, offer exposure to ETH without the need for direct ownership, making it easier for institutions to integrate ETH into their portfolios.

The breaching of key resistance levels and the formation of support around $2,610-$2,615 suggest a potential shift in the asset's price dynamics. This could indicate a new phase of consolidation or a continuation of the current uptrend, depending on how the market responds to upcoming developments.

As ETH continues to gain traction, it is essential for investors to monitor key resistance and support levels. The recent price action, coupled with the growing institutional demand, presents a compelling case for ETH's potential to reach new highs. However, market participants should remain vigilant and consider the broader economic and geopolitical context when evaluating their positions.

References:
[1] https://en.coinotag.com/ethena-ena-shows-potential-for-rally-toward-1-amid-technical-gains-and-upcoming-coinbase-listing/
[2] https://en.coinotag.com/arbitrum-sees-significant-stablecoin-inflows-amid-ethereum-outflows-suggesting-potential-layer-2-shift/