Ethereum Surges 100% as Institutional Interest Drives $2 Billion ETF Inflows

Ethereum has experienced a significant surge in value, driven by a notable increase in institutional interest, particularly through Ethereum-based exchange-traded funds (ETFs). This influx of capital has been particularly evident in the U.S. spot Ether ETFs, which have recorded a net cash inflow of approximately $2 billion since April. This substantial investment has brought the total net assets of these ETFs to around $10.71 billion, underscoring the growing confidence of institutional investors in Ethereum.

The surge in institutional interest has been bolstered by on-chain data, which reveals record cash inflows into Ethereum. 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.

Ethereum's dominance in the decentralized financial (DeFi) protocols and the tokenization of real-world assets continues to be a key factor in its appeal to institutional investors. Despite the emergence of other blockchain networks, Ethereum maintains a total value locked (TVL) of about $65 billion and a stablecoins market cap of around $126 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.

The Ethereum network's ability to maintain its price above a crucial support level of around $2,500 has demonstrated resilience amidst broader market volatility. This stability has been further supported by technical analysis, which indicates that Bitcoin dominance has reached a major psychological resistance. 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.