Ether Surges 18% Toward $2,500 as Institutional Interest Grows

Ether (ETH) has been on a notable recovery trajectory, with its price climbing towards the $2,500 mark. This bullish trend is supported by strong technical indicators, including a dragonfly doji pattern and a rebound from key support zones between $2,100 and $2,200. These technical signals suggest that buyers are actively engaging in the market, pushing the price upward.

The 2-week liquidation heatmap further underscores this bullish sentiment, revealing aggressive price action as ETH targets liquidity-rich zones above $2,500. These zones, where market makers could hunt stop-loss orders, act as magnets, pulling prices upward amid potential short squeezes. The recent price rise since May also marks the highest volume engagement since July-August 2022, indicating renewed retail and institutional interest in ETH.

Onchain analyst Amr Taha highlighted that Binance saw over 61,000 ETH withdrawn on Monday, a strong bullish signal suggesting traders are moving assets off exchanges. This move likely indicates a pivot from short-term speculation toward long-term holding strategies, further supporting the bullish outlook for ETH.

According to recent data by Swissblock, Ether could be poised for a significant surge as capital rotation patterns shift from Bitcoin. The analysis identifies a “Zone 5” accumulation phase, where historical data suggests significant upside for ETH. Currently, over 90% of the BTC supply is in profit, indicating limited short-term upside, while ETH lags with under 80% profit realization. This lag, a recurring signal to ETH’s catch-up play, suggests capital could be rotating as BTC peaks.

The analysis emphasized that Zone 5 mirrors past setups where ETH outperformed, with the ETH/BTC ratio nearing multi-year lows, a signal of undervaluation. The current data underscores a familiar pattern with capital historically flowing into ETH, setting the stage for an altcoin rally. Recent spot ETF netflows further signal this shift. In May, spot Bitcoin ETFs saw $5.23 billion, dropping to $2.64 billion in June, while spot Ethereum ETFs surged to $950 million from $564 million. This yields a relative ratio shift with ETH ETF inflows growing by 68.4% month-over-month, while BTC inflows have declined by 49.5%. This 118% swing in favor of ETH also highlights the acceleration of a possible institutional capital rotation. Thus, institutional investors could swing toward ETH, reinforcing Swissblock’s bullish outlook.