Ether Drops 15% in Week, Institutional Buying Signals Bullish Outlook

Ether (ETH) experienced a tumultuous week, reaching a 15-week high of $2,879 on Wednesday before plummeting to $2,433 on Friday, marking a 15% decline. Despite this volatility, ETH is currently consolidating just under $2,600. The cryptocurrency's price trend suggests a potential bearish breakdown below the supporting trendline, which could lead to corrections near the support range at $2,100-$2,200 if sell pressure intensifies. This range has historically acted as support from the end of 2023 to August 2024.

ETH's historical performance in Q3 adds weight to the expectation of a potential drawdown period. The altcoin has averaged a modest 0.88% return in Q3, with the prior two quarters showing significant declines of 24.19% and 13.64%, respectively. The cryptocurrency market tends to see reduced trading volume and volatility due to the summer vacation season, and if these seasonal trends persist into Q3 2025, Ether could dip to the $2,100-$2,200 range.

A price near $2,100 could mark a prime entry point for ETH. Spot ETH ETF flows are on the rise, with 154K ETH in inflows this week alone, which is 5x higher than the recent weekly average. The biggest single-day ETH inflow this month was 77K ETH on June 11th. Besides spot ETFs accumulating, BlackRock’s buying of Ether through its iShares Ethereum Trust (ETHA) underscores the flow of institutional capital. With over $500 million in ETH added in recent weeks, bringing its holdings to 1.51 million ETH ($3.87 billion), BlackRock’s structured accumulation points to a longer-term bullish outlook.

Data from Token Terminal also pointed out that billions of dollars are flowing into Ether as financial services incumbents and financial technology companies tokenize assets. The chart shows tokenized assets under management surging past $5 billion, with major players like BlackRock and Apollo driving the trend. This institutional buildout, combined with historical Q4 strength—often fueled by year-end investment strategies—could trigger an ETH breakout by the end of 2025.

In summary, the ETH price trend data suggests that all future dips could be strategic entry points for buying. The rising spot ETH ETF inflows and BlackRock’s accumulation signal strong institutional investor interest, supporting a bullish outlook. A dip to $2,100 could be a strategic entry point, bolstered by tokenized AUM surpassing $5 billion and a potential Q4 breakout driven by year-end strategies. However, investors should conduct their own research when making a decision, as every investment and trading move involves risk.