Ethereum Surges 20% as Institutional Investment Hits $1 Billion

Ethereum is currently experiencing a significant surge in institutional investment and user adoption, which is positioning it for a potential breakout to $3,000. 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, combined 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. According to analysts, 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.