Ethereum Price Surges 15% Since June 26 Despite Declining Open Interest

Ethereum's price has shown significant strength, hitting three local peaks above $2,500 since June 26. However, this rally has not been accompanied by a corresponding increase in open interest, which has instead declined, falling below $5.6 billion. This divergence suggests that leveraged traders are not fully supporting the price movement, indicating a level of hesitation or caution among these participants.

The gap between price performance and open interest began in early June and continued through July 1. Each time Ethereum's price rallied, open interest dropped sharply, revealing that traders are reluctant to increase their exposure at these resistance levels. Despite the weakening derivatives momentum, the spot price has remained robust, holding above $2,400. This discrepancy highlights a lack of conviction among futures participants as they approach July.

Institutional interest in Ethereum has also been notable. BlackRock, a prominent investment management corporation, purchased $54.8 million worth of Ethereum on July 1. This significant inflow was partially offset by an outflow of $24.1 million on the same day, resulting in a net exposure of approximately $30.7 million. No Bitcoin purchases were reported during this period. This marks the largest single-day Ethereum inflow recorded, indicating a strong institutional conviction in the asset.

June saw volatile net flows for Ethereum, with a peak inflow of 98.0 on June 24, which was followed by substantial outflows on the same day. Despite this volatility, July began with renewed capital entering the Ethereum market. Notably, June 23 and June 27 also saw significant Ethereum inflows, driven by high activity from institutional sources. These inflows were followed by positive accumulation trends, suggesting that institutional investors are actively participating in the market.

Whale wallets, which hold between 1,000 and 10,000 ETH, have been accumulating Ethereum at an unprecedented rate since 2018. According to data from Glassnode, whale net positions flipped strongly positive in June, increasing from 12.8 million to 14.2 million ETH. This accumulation marks the highest buying volume by large wallets since 2018 and coincides with Ethereum's price recovery, indicating that major players are returning to the market with long-term positioning strategies rather than speculative plays.

Whale buying activity spiked as Ethereum's price remained range-bound, suggesting that smart money is accumulating during market indecision. This trend of accumulation by large wallets has been confirmed by Glassnode data through mid-June. The overall sentiment in the market appears divided, with traders exhibiting caution while institutions and whales demonstrate growing confidence in Ethereum's potential.