Ethereum Surges 6.2% to $2,700 on Institutional Buying Spree

Ethereum (ETH) has made a significant breakthrough, surpassing the critical $2,700 threshold on the morning of July 10. This move marks a 6.2% increase in the last 24 hours, propelling Ethereum ahead of Bitcoin and other major cryptocurrencies in recent gains. Analysts suggest that this price volatility in Ethereum could ignite a new altcoin rally.

Starting the month at $2,484.51, Ethereum has showcased a notable 17.04% increase in value in July. Its daily surge of 6.2% has effectively tripled Bitcoin’s 2.2% growth. The open interest in Ethereum futures on the Chicago Mercantile Exchange has surged to $3.27 billion, the highest level since February 2. Furthermore, institutional investors are gravitating towards ETH through regulated products, as evidenced by eight consecutive weeks of net inflows into spot Ethereum ETFs.

In technical analysis, Ethereum’s price has settled above the 50, 100, and 200-day moving averages. The range of $2,650–$2,750 now acts as a support level. Although the Relative Strength Index (RSI) at 66.71 indicates ongoing buying pressure, Ethereum’s trajectory could face significant profit-taking challenges in the low-volume zone between $3,000 and $3,300.

The market research firm emphasizes the critical nature of the upcoming 72 hours. Should Ethereum maintain its momentum and continue to strengthen against Bitcoin, the dominance of the altcoin market unseen since 2021 might be confirmed. Under such circumstances, capital inflow into medium-sized altcoins might accelerate, potentially heralding the onset of an altcoin season.

Should Ethereum’s price fall below $2,750, the upward momentum might weaken. Analysts point out that in case of a pullback, $2,375 will be the first significant support level. Otherwise, the price might remain trapped in a protracted horizontal range. For the upward trend to persist, sustained volume purchases and daily closings above $2,795 are deemed crucial.

Ethereum has recently surged past a key threshold, exceeding $2,700 with a 6.2% rise in 24 hours. This significant increase has outpaced major cryptocurrencies, including Bitcoin, and has been driven by a substantial influx of institutional investments. Major asset managers have been accumulating Ethereum, contributing to a 1.63% daily increase in its price. These institutional investors have acquired over $500 million in Ethereum through ETF products. This institutional buying spree has been particularly evident since mid-June, with over $4.5 billion in institutional funds pouring into US-listed spot ETH ETFs. This influx has reshaped the supply landscape, leading to a squeeze on Ethereum's circulating supply. The situation is further compounded by staking withdrawals and ongoing token burns, which have significantly impacted the price.

The surge in Ethereum's price is not only a result of institutional buying but also reflects improved market sentiment and liquidity. Community sentiment remains strong, with developers and community leaders highlighting the positive impact of the recent upgrade. Historical trends suggest that such institutional buying sprees often precede strong price increases in cryptocurrencies, and insights from on-chain data reinforce the potential for continued price growth. Key market players are expected to monitor these developments carefully, anticipating possible regulatory implications and benefits from technological advancements in Ethereum's ecosystem. 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, 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.

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 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 analyst, 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. He 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.