Ethereum Surges 9% as BlackRock Accumulates $492 Million in ETH

Ethereum (ETH) has been consolidating within a tight range, indicating an imminent breakout. The cryptocurrency's price has experienced similar volatility in the past, and recent market dynamics suggest that a significant move could be on the horizon. Ethereum's price has bounced back from a sharp dip, currently hovering around $2,520. With bullish momentum building and the price approaching $2,750, there is speculation that ETH could hit $3,000 in the near future. The market structure suggests that if ETH sustains momentum above $2,800, a significant upward move could be imminent.

BlackRock, a major player in traditional finance, has been actively accumulating ETH, leading to further speculation about institutional accumulation. This trend is seen as a bullish sign, as it indicates growing institutional demand for Ethereum. BlackRock's activity suggests a deliberate accumulation strategy, building positions during a period of subdued price action. This institutional interest could fuel bullish momentum for Ethereum, potentially driving the price towards new highs.

According to on-chain data analysis, BlackRock has gradually shifted its focus from Bitcoin to Ether in the past few days. In the past week, BlackRock’s ETHA recorded a net cash inflow of over $492 million to currently hold about $4.84 billion in cumulative net cash inflow. The gradual crypto cash rotation from Bitcoin to Ethereum has fueled the narrative of the much-anticipated altseason 2025. Moreover, the ETH/BTC pair has been dropping for the past few years until recently, signaling a major shift by institutional investors to the altcoin market.

The recent surge in ETF inflows has also contributed to the bullish sentiment surrounding Ethereum. On June 5, 2025, there were significant net inflows into cryptocurrency ETFs, with Ethereum ETFs posting a net flow of 22,029 ETH, worth about $57.91 million. BlackRock's iShares Ethereum ETF alone received 27,846 ETH, valued at $73.21 million. These robust ETF inflows indicate growing institutional demand and can bolster short-term market liquidity, supporting potential price appreciation for ETH.

The technical analysis of Ethereum's price movement shows bullish momentum, with the price surpassing the $2,600 mark and a relative strength index (RSI) of 62, indicating room for further upside before overbought conditions. On-chain metrics also support this trend, with Ethereum's network activity mirroring increased transactions and gas fees spiking by 10%. The correlation between stock market movements and crypto assets remains evident, with the S&P 500's 0.8% rise on June 5, 2025, aligning with increased risk appetite, pushing investors toward Ethereum as an alternative high-yield asset.

In summary, the rising demand from BlackRock and other institutional investors, coupled with the bullish technical indicators and growing ETF inflows, could fuel bullish momentum for Ethereum. If Ethereum breaks above $2,700 with strong momentum, it could quickly move up to $3,000 or even higher, potentially reaching new all-time highs. Traders and investors should monitor these developments closely, as the sustained institutional interest could pave the way for further price appreciation in the Ethereum market.