Ethereum Surges 8.73% as Institutional Demand Hits $500 Million

Ethereum (ETH) has experienced a significant price surge, increasing by 8.73% in the past 24 hours and approaching the $2,800 mark for the first time since February. This upward trend is primarily driven by strong institutional demand, with major players such as BlackRock purchasing $500 million worth of ETH in just 10 days. Additionally, the number of staked Ethereum has reached a record high of 34.65 million, further fueling the price increase.

Despite the recent gains, the price of ETH is still approximately 43% below its all-time high of $4,721. However, a breakout above the $2,800 mark could potentially lead to further upside, with the possibility of the token reaching the $3,000 threshold. Technically, ETH has broken above its 200-day simple moving average (SMA) of $2,660 and its 50-day SMA of $2,287. The relative strength index (RSI) is also leaning bullish-neutral, currently sitting at 65.

According to the analyst's forecast, the signs point to a ‘break to the upside,’ with the token ‘taking the smaller altcoins with it’ in what is described as ‘a great market environment.’ This optimistic outlook is supported by the increasing open interest in futures, which has risen from $26 billion to $36 billion in the past month. Additionally, spot exchange-traded funds (ETFs) have seen around $837.5 million worth of ETH added since May 16, further indicating strong institutional interest in the cryptocurrency.