Ethereum Surges 6.127% Amid Bullish Signals, Institutional Buying

Ethereum's latest price was $2662.66, up 6.127% in the last 24 hours. The cryptocurrency has shown resilience, trading above the $2,400–$2,500 zone while many other altcoins have lost momentum. This range has become a critical battleground, with bulls needing a clean breakout above the $2,800 mark to confirm a return to a bullish phase and potentially kick off the next leg higher.

However, macroeconomic headwinds are building. US Treasury yields continue to rise as markets brace for prolonged high interest rates, signaling tighter financial conditions ahead. Combined with ongoing geopolitical uncertainty and sluggish global growth expectations, these factors continue to weigh heavily on risk assets, including crypto.

Adding to the cautious tone, top analyst Big Cheds recently highlighted Ethereum’s weakening weekly momentum. According to Cheds, ETH is heading for its fourth consecutive small-bodied weekly candle — a signal of indecision that typically precedes major moves. He notes that the current setup looks pre-tower top, a classic bearish formation that often marks exhaustion at the top of a trend before a sharp reversal.

This puts Ethereum at a critical juncture. A decisive breakout above $2,800 would invalidate the bearish scenario and strengthen the case for recovery toward the $3,000–$3,200 range. On the other hand, continued weakness and a failure to gain traction could trigger renewed selling pressure, especially if macro conditions worsen.

As Ethereum trades within a tightening range, the next few weeks will be crucial. Whether bulls can flip resistance or bears regain control will likely determine the direction for ETH and the broader altcoin market heading into Q3.

Ethereum futures open interest has surged 40% in 30 days, while the spot ETH ETFs marked four consecutive weeks of inflows. ETH’s Gaussian channel indicator suggests a rally to $3,100 to $3,600 could occur. Ethereum’s native token, Ether (ETH), has consolidated between $2,300 and $2,800 for the past 30 days, but this sideways phase could be coming to an end. The 4-hour chart shows ETH retaining support from the 200-day exponential moving average (EMA), and the price is forming a hidden bullish divergence with the relative strength index (RSI). A hidden bullish divergence occurs when the price forms higher lows while indicators like RSI form a lower low, signaling a trend breakout.

Ethereum futures open interest (OI) data from CoinGlass shows a 40% increase to $36 billion from $26 billion over the last 30 days, reflecting growing trader confidence amid price consolidation, a pattern that tends to precede breakouts. Spot Ethereum ETFs have recorded their fourth consecutive week of net inflows, accumulating nearly 98,000 ETH and bringing total holdings to approximately 3.77 million ETH. This trend underscores growing institutional appetite for direct exposure to Ethereum. Notably, BlackRock has quietly amassed 1.5 million ETH, valued at $2.71 billion, reflecting a strategic accumulation despite ETH’s price remaining nearly 48% below its all-time high. Over the last ten days alone, BlackRock has purchased $500 million worth of Ethereum, signaling robust institutional conviction. Ether-based investment products led crypto exchange-traded product (ETP) inflows last week with $296 million, marking the seventh consecutive week of positive inflows — the longest streak since the 2024 U.S. presidential election cycle. This momentum is further supported by CoinShares data indicating a notable recovery in investor sentiment toward Ethereum.

Ethereum’s price has recently reclaimed the midline of the Gaussian channel, a sophisticated trend indicator that adapts to market volatility by plotting price movements within a statistically derived range. Historically, ETH’s price crossing above this midline has preceded substantial rallies. For example, in 2023, ETH surged 93% to reach $4,000 following such a crossover, while in 2020, it experienced an extraordinary 1,820% increase. Currently stabilizing around $2,570, ETH’s position above the Gaussian channel midline suggests a strong probability of an upward move toward the $3,100 to $3,600 range, provided momentum is sustained. This technical setup aligns with other bullish signals, reinforcing the outlook for a near-term price rally.

Investor sentiment toward Ethereum remains cautiously optimistic, bolstered by consistent inflows into Ether-based products despite broader market uncertainties. The ongoing regulatory dialogue in the United States, particularly regarding crypto asset classification and oversight by the Federal Reserve, continues to influence market dynamics. However, the sustained accumulation by institutional investors and positive technical indicators suggest that Ethereum is well-positioned to capitalize on favorable regulatory developments. Market participants are advised to monitor regulatory updates closely, as clarity could serve as a catalyst for further price appreciation.