Ethereum Surges 100% Since April Amid Institutional Interest

Ethereum has recently seen a surge in interest from large investors, with on-chain data revealing record cash inflows. This influx of capital has been driven by institutional investors, notably led by BlackRock’s ETHA, indicating a significant accumulation of Ether by these entities. The ETH/BTC pair has also shown signs of a market reversal, as the dominance of Bitcoin in the macro environment is anticipated to wane. This shift in market dynamics has been bolstered by Ethereum's ability to maintain its price above a crucial support level of around $2,500, demonstrating resilience amidst broader market volatility.

According to on-chain data analysis, Ethereum accounts holding between 10,000 and 100,000 ETH coins have added over 200,000 coins in recent days, bringing their total holdings to approximately 26.88 million coins. This accumulation has led to a significant decline in the overall supply of Ether on centralized exchanges, reaching a multi-year low of about 18 million coins. This trend suggests that institutional investors are increasingly bullish on Ethereum, with some even shifting their investments from Bitcoin to Ethereum.

The Ethereum network continues to lead in the development of decentralized financial (DeFi) protocols and the tokenization of real-world assets. Despite the emergence of other blockchain networks like Solana, Ethereum maintains a total value locked (TVL) of about $65 billion and a stablecoins market cap of around $126 billion. In comparison, Solana has a TVL of around $8.59 billion and a stablecoins market cap of around $10.8 billion, while the Tron network has a TVL of around $4.95 billion and a stablecoins market cap of around $81 billion. Ethereum's proof-of-stake (PoS) consensus mechanism has also seen a surge in staked Ether, with over 35.5 million coins staked by more than 100,000 validators, further solidifying its position in the market.

Institutional confidence in Ethereum has grown significantly, driven by the impressive performance of U.S. spot Ether ETFs. These ETFs have recorded a net cash inflow of about $2 billion since April, bringing their total net assets to around $10.71 billion. This influx of capital, combined with technical analysis indicating that Bitcoin dominance has reached a major psychological resistance, suggests an imminent market reversal. The ETH/BTC pair is attempting to form a macro bullish momentum, leading more investors to bet on an altseason in the near term.

Since early May, Ethereum has been consolidating above $2,500, with the price consistently closing above the year-to-date falling logarithmic trend. This bullish sentiment is further supported by the daily MACD indicator, where the MACD line recently crossed above the zero line amid rising bullish histograms. Top analyst Carl Runefelt has highlighted that a breakout above the $2,700 resistance level is crucial for Ethereum to ignite an impulsive move toward higher levels. Without this breakout, Ethereum risks remaining range-bound or revisiting lower demand zones. The current market structure, combined with positive sentiment surrounding altcoins and growing institutional interest in Ethereum, contributes to the optimism. However, the coming days will be critical. A sustained move above $2,700 could open the door for a rally toward $3,000 and beyond, while failure to break out may delay Ethereum’s next major leg up.

Ethereum has emerged as the leader of a potential recovery in the altcoin market, which has been stuck in a prolonged bear market since 2022. Since its April lows, Ethereum has more than doubled in price, surging over 100% and reclaiming key support levels above $2,500. This sharp rebound suggests that a new bullish phase for Ethereum—and potentially the broader altcoin market—could be in the early stages. However, the optimism is tempered by growing macroeconomic risks. Recent data has raised concerns about systemic fragility, with rising Treasury yields and persistent inflation fueling uncertainty across risk assets. Investors remain cautious as higher yields could limit liquidity flows into crypto, particularly into speculative altcoins.

According to Carl Runefelt, Ethereum’s price structure is approaching a critical point. He highlights that Ethereum is currently trading within a rising wedge pattern—a bearish formation that often precedes a sharp pullback. Runefelt warns that if Ethereum fails to break decisively above the $2,700 resistance level soon, the price may reject and fall toward lower support, potentially leading to a drastic correction. For now, Ethereum remains range-bound between $2,400 and $2,700. A confirmed breakout above the upper boundary could fuel continued bullish momentum and trigger a broader altcoin rally. But failure to hold current levels, especially with bearish macro pressure building, could signal that the recent gains were a temporary relief rally. Ethereum’s next move will likely define the near-term direction for the entire altcoin sector.

Ethereum is currently trading at $2,574.70, gaining over 2.2% in the last session. As shown in the 3-day chart, Ethereum has remained range-bound since early May, fluctuating between the $2,400 support and the $2,700 resistance. The latest move above the 50-day and 100-day simple moving averages (SMAs), currently at $2,226 and $2,644, respectively, signals growing bullish momentum. However, Ethereum still faces a significant challenge near the 200-day SMA, currently sitting at $2,791, right below the critical $2,800 liquidity level. The price has tested this resistance zone multiple times without success, suggesting that a strong breakout above $2,700–$2,800 is needed to initiate an impulsive move higher. Volume remains stable, and Ethereum’s ability to hold recent gains hints at continued accumulation, but a lack of decisive follow-through could signal buyer exhaustion. If bulls manage to reclaim $2,800, it would open the door toward $3,000 and confirm a breakout from the multi-month range. On the downside, a failure to hold $2,500 could trigger a drop back toward $2,400 or even $2,200 if broader market conditions deteriorate. For now, Ethereum remains in a pivotal zone, and its next major move will likely determine broader altcoin momentum.