Ethereum Surges 6% as Institutional Accumulation Reaches Record Highs

Ethereum’s price remained relatively stable throughout June, but underlying network metrics reached historic highs. This quiet period gave way to significant movement as July began, with the entire crypto market lifting on news of the US trade deal with Vietnam and a rise in the M2 money supply. On July 3, ETH saw a sharp 6% gain in 24 hours, trading above $2,600, hinting that the market may finally be waking up to the underlying strength steadily building within the network.

Accumulation addresses, which exclude centralized exchanges and maintain minimal outflows, reached a record 22.7465 million ETH held as of June 30. This figure represented almost a 36% increase from 16.7281 million ETH on June 1. These wallets logged their highest single-month purchases as well, adding 6.0184 million ETH in June. The realized price for these addresses stood at $2,114.70 on July 1, while ETH traded at $2,565 on July 2, which gave holders an unrealized gain of 21.29%.

Liquid staking also posted new records, growing from 34.5461 million on June 1 to 35.5265 million ETH by June 30. This marks the largest monthly staking growth on record for Ethereum. By July 1, liquid staking hit another all-time high at 35.5644 million ETH. The surge can be attributed to institutional investors, ETFs, and large holders accumulating ETH and opting for yield while awaiting price appreciation. Protocols like Lido and Binance ETH Staking have emerged as key beneficiaries due to their scale and features that attract institutional flows.

Despite ETH’s price staying below bullish expectations throughout last month, these accumulation and staking trends pointed to a strong institutional confidence in the altcoin’s long-term outlook. The record levels of locked ETH and continued accumulation indicate the market may be positioning for a more upward move. Building on this momentum, Ethereum is now catching the eye of corporate treasuries. The project may be entering its own “MicroStrategy era” as corporations begin stacking ETH for treasury strategies, seeking yield alongside reserve asset growth. BitMine and SharpLink are leading this shift. The latter, for one, is planning a $250 million ETH allocation and adopting an “ETH per share” model. Tom Lee notes that Ethereum will benefit as stablecoin adoption rises and finance moves on-chain. Meanwhile, Joe Lubin’s SharpLink raised $425 million to stack and stake ETH. Industry watchers believe this is the start of a wave of Ethereum treasury companies, with firms waking up to ETH’s dual role as a reserve asset and yield generator.

On July 3, Ethereum (ETH) experienced a significant 6% surge within a 24-hour period, with its price rising above $2,600. This sharp increase suggested a potential awakening of the market to the underlying strength of Ethereum. The bullish momentum extended across major digital assets, with Ethereum's price jumping 7% on Wednesday and continuing to rise by over 1% the following day. This trend was attributed to institutional investors and ETFs, as staking volumes reached an all-time high of 35.564 million ETH on July 1st. Market analysts pointed to the increasing interest from institutional players as a primary driver of this trend.

The positive sentiment was further bolstered by predictions from Bitwise CIO Matt Hougan, who forecasted that Ethereum ETFs could attract $10 billion in inflows in the second half of 2025. This prediction was based on the growing narrative of tokenization and stablecoins, which traditional investors find appealing. The inflows into Ethereum ETFs were evident in June, with net inflows of $1.16 billion, marking their second-best monthly performance since debuting in July 2024. The continued positive momentum in ETH ETFs could see them surpass the $5 billion cumulative net inflow threshold before their first anniversary on July 23.

Several public companies have also expanded their Ethereum allocations, aiming to replicate Michael Saylor's strategy for the top altcoin. NASDAQ-listed Bit Digital (BTBT) secured an additional $21.4 million to boost its Ethereum treasury strategy, while SharpLink Gaming (SBET) purchased 9,468 ETH after raising $24.4 million. BitMine Immersion Technologies (BMNR) is also planning to raise $250 million in a private placement to kickstart an ETH treasury strategy. However, analysts have cautioned that companies copying Saylor's playbook could trigger system risks in the crypto market.

Technical analysis indicated a bullish trend for Ethereum, with the price surging above the 50-day and 100-day Simple Moving Average (SMA) convergence. This move marked a breakout from a weeks-long consolidation in the $2,300-$2,500 range. To validate the breakout, Ethereum must stage a firm move above the upper boundary of a key symmetrical triangle pattern while holding the SMAs' convergence as support. The Relative Strength Index (RSI) was above its neutral level, while the Stochastic Oscillator (Stoch) was in the overbought region. The Moving Average Convergence Divergence (MACD) was testing its moving average line, and a firm crossover above would accelerate the bullish momentum.

The current price action was seen as a test of Ethereum's strength, and a successful breakout above $2,600 could pave the way for a sustained bullish trend. The MACD had made a bullish crossover, confirming momentum in favor of buyers. Ethereum had reclaimed critical moving averages, and if buyers continued while sellers exhausted, ETH could reclaim $2,548 and eye a breakout to $2,700. The bullish divergence in Ethereum's price in July suggested a potential shift in market sentiment, with institutional interest and technical indicators pointing towards a sustained upward trend.