Ethereum Surges 10% to $2,400 on Institutional Investment and Wallet Growth

Ethereum has recently surged above the $2,400 mark, marking a significant milestone in its price trajectory. This surge is driven by a combination of factors, including a substantial increase in institutional investment and a rapid growth in user adoption. Spot Ethereum ETFs in the U.S. have accumulated over $1 billion in total net inflows, with notable daily inflows recorded in June. This institutional backing, coupled with a bullish technical setup, suggests a positive outlook for Ethereum.

The Ethereum network is also witnessing rapid growth, adding between 800,000 and 1 million new wallets per week. This surge in new wallet creation indicates rising user engagement and adoption, further bolstering Ethereum's bullish trajectory. Analysts suggest that these factors—sustained institutional investment, a constructive technical setup, and an explosion in new wallet creation—are evidence that Ethereum is gearing up for a significant price breakout.

Ethereum recently dipped into a key support zone around $2,400, identified as a liquidity pocket. This move, according to analyst Michaël van de Poppe, echoes Ethereum’s previous patterns of grabbing liquidity before a reversal higher. The price has tested the $2,576 resistance multiple times, with repeated rejections seen as a sign of momentum building for the next leg up. Van de Poppe noted that the current consolidation phase, lasting over a month, suggests an extreme build-up for a big breakout. A successful move above $2,576 could open the door for a push toward $2,800–$3,000 in the near term.

Despite some volatility, with a net outflow of $11.2 million recorded on June 20, the overall trend remains positive. BlackRock’s ETH ETF sold $19.7 million, its first recorded outflow since May 7, while Grayscale’s ETHE attracted $6.6 million, and VanEck’s ETF saw $1.8 million in inflows. This sustained demand from institutional investors, coupled with the rapid on-chain growth, positions Ethereum strongly. If ETF inflows and on-chain momentum continue into July, Ethereum could be targeting the $3,000 mark soon.

Ethereum's Whale Surge. Ethereum has been flexing its muscles as it resolves to remain above 2,400, despite the market jitters. In one day, whales, wallets holding large amounts of ETH, accumulated $2.5 billion worth of ETH. This accumulation by whales indicates a strong belief in Ethereum's potential for further price appreciation.

The ETH liquidation heatmap reveals a $5.10 billion liquidation leverage around the $2,400 level. This significant liquidation level suggests that a break above $2,400 could trigger a substantial price surge, as short positions are liquidated. Analysts are monitoring key levels, with potential targets at $2,800 or $2,400 depending on price movements. The current consolidation phase, lasting over a month, suggests an extreme build-up for a big breakout. A successful move above $2,576 could open the door for a push toward $2,800–$3,000 in the near term.

On the daily timeframe, ETH remains inside an ascending channel, consistently finding support around the $2,400 area while struggling to break above the $2,800 resistance. This technical setup, combined with the bullish fundamentals, suggests that Ethereum is poised for a significant price breakout. According to the analyst's forecast, Ethereum is expected to surge past $4,891.70 and possibly reach $5,494.68 by the end of 2025, marking a new all-time high.