Ether Plummets 15% in Volatile Week, Institutional Inflows Surge

Ether (ETH) has 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.
Historical data indicates that ETH tends to experience a drawdown period in Q3, with an average return of 0.88% for the quarter. The prior two quarters saw significant declines of 24.19% and 13.64%, respectively. The summer vacation season typically results in reduced trading volume and volatility, which could exacerbate this trend in Q3 2025, potentially pushing ETH to the $2,100-$2,200 range.
Despite the potential for a drawdown, a price near $2,100 could present a strategic entry point for ETH. Spot ETH ETF inflows have surged, with 154,000 ETH in inflows this week alone, five times higher than the recent weekly average. This influx of institutional capital is further bolstered by BlackRock's accumulation of Ether through its iShares Ethereum Trust (ETHA), which has added over $500 million in ETH in recent weeks, bringing its holdings to 1.51 million ETH ($3.87 billion).
Tokenized assets under management have surpassed $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. The combination of rising spot ETH ETF inflows, BlackRock's accumulation, and the tokenization of assets suggests strong institutional investor interest, supporting a bullish outlook for ETH.

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