Ethereum Surges 26% to $2,400 as Institutional Inflows Boost Bullish Momentum

Ethereum has recently shown significant price movements, surpassing key valuation metrics and establishing new technical support levels. After a period of sideways price action, Ether (ETH) is demonstrating stronger signs of life and price resilience, reminiscent of the early stages of a new bull cycle. Ethereum’s market structure appears to be solidifying around $2,370, with institutional inflows through spot ETFs setting the stage for a potential run toward $3,000, provided resistance levels are cleared in the coming days.

Ethereum has moved back above its Realized Price of $1,900, a critical price point that reflects the average price at which all ETH in circulation was last moved on-chain. This indicates that the average holder is back in profit. Additionally, Ethereum is currently trading at $2,400, which is above the True Market Mean. Historically, when Ethereum has been above this line, the market has been in a full-blown bull phase, acting as a precursor to significant upward price action.

The next major landmark to watch is the Active Realized Price at $2,900. This measure gives the average purchase price of active market players. Moving above this level would suggest strong momentum and offer a mental go sign for both retail and institutional investors waiting for a sustained breakout.

Ethereum has established a firm support base at $2,370, which has held up well in recent retests. This level serves as a launching point for price to push higher without immediate resistance. The next level of resistance is at $2,588, and a break through this level could send Ethereum toward the $3,000 area, marking a full recovery from earlier lows and signaling a return to a more aggressive bullish posture.

Analysts note that there is little resistance between current prices and the $3,000 threshold, creating a favorable risk-reward ratio for traders. Momentum indicators are moving in a bullish direction, and ETH is priced above several key moving averages, indicating a solid market structure for the bulls.

Ethereum-based investment products have shown promising inflows recently, indicating improved sentiment. On May 22, spot Ethereum ETFs had a net inflow of $111 million, marking the fifth consecutive day of positive institutional investment. Ethereum-backed funds now manage over half a billion dollars, with the potential for significant growth. This influx of cash suggests growing institutional confidence in Ethereum, further supporting the bullish outlook.