Ethereum Gains Institutional Support With $20.1 Million Inflows

Institutional investors are increasingly backing Ethereum, despite a week of market stagnation. BlackRock’s Ethereum ETF has outperformed broader market headwinds, drawing $20 million in inflows during May 2 trading, while other ETFs saw no movement. This influx coincides with a week of volatility, where ETH traded within a narrow range but closed with a 3% loss. The broader market momentum has stalled as the US-China trade war impacts consumers and the U.S. GDP contracts for the first time since Q1 2022.

Ethereum’s traction in traditional investment circles signals growing institutional confidence, strengthening its position in the conversation about the best cryptocurrency to buy. According to CoinGlass data, ETHA attracted $20.1 million on May 2, bringing BlackRock’s ETH holding to almost 2% of the total market cap. This substantial accumulation indicates heightened institutional interest and could tighten ETH liquidity on major exchanges, easing volatility through longer-term supply-demand dynamics.

Ask Aime: "Is BlackRock's Ethereum ETF outperforming the broader market? How is it impacting ETH's price stability?"

The move also comes just ahead of the May 7 Pectra hard fork, an upgrade aimed at improving network speed, reducing fees, and enhancing user experience. Pectra raises the staking cap from 32 ETH to 2,048 ETH, providing institutions with a stronger foothold in Ethereum staking.

While a $10,000 Ethereum price is an unrealistic near-term target due to ongoing economic concerns, there is potential for a surge. The past few months have been turbulent, but they have yet to invalidate a symmetrical triangle pattern forming since 2021. If the past month’s reversal holds, the dip below the pattern’s lower boundary could be brushed off as a false breakdown. However, if momentum fades, Ethereum risks a return to the support zone that has underpinned its 4-month decline at $1400. A breakdown there would open the door to a deeper 40% slide toward $1,050, fully invalidating the pattern.

Signs of strength are emerging, with the MACD line en route to form a golden cross, surpassing the signal line, often signaling a long-term trend shift on such a high time frame. However, the RSI struggles to break free of oversold territory below 40, indicating that buyers currently lack the conviction to push the next upwards move. Should buying pressure return and the Ethereum price break back into the triangle pattern, the next major target sits at $2,520—a 40% move from current levels.

Despite institutions favoring Ethereum as the altcoin of choice, Bitcoin remains the go-to cryptocurrency, attracting $675 million inflows during May 2 trading. While Bitcoin provides stable gains, it often sacrifices upside potential. This is where Bitcoin Bull (BTCBULL) comes in, offering a fresh way to capitalize on BTC tailwinds. True to its name, Bitcoin Bull ties its tokenomics to Bitcoin’s price growth in a deflationary model. The project burns tokens and distributes BTC airdrops whenever Bitcoin reaches key milestones, starting at $125,000 and triggering new rewards for every $25,000 climb thereafter.

With some analysts forecasting highs of $1M this cycle and BTC finally back on the recovery path, BTCBULL could become a Bitcoin Maxi’s best friend. With over $5.3 million raised in its initial 6 weeks, the project is already gaining strong momentum, potentially credited to its 77% APY on staking that rewards early investors.