TLDR
- Ethereum crossed $2,700 for the first time since February, rising nearly 5% in 24 hours to trade at $2,736
- U.S. spot Ethereum ETFs attracted $402 million in inflows over the past month, with BlackRock’s fund alone bringing in $53 million in 24 hours
- Institutions like Abraxas Capital purchased over 350,000 ETH worth $837 million between May 7-21
- Technical analysis shows Ethereum forming a bull flag pattern with potential breakout toward $3,000-$3,500
- Current market signals suggest room for further upside before major corrections, with retail activity still subdued
Ethereum has crossed the $2,700 mark for the first time since February. The cryptocurrency rose nearly 5% over 24 hours to reach $2,736 at press time.
This move extends Ethereum’s recovery from a difficult first quarter. The asset dropped more than 45% in Q1 but has now gained 53% over the past month.
Institutional interest appears to be driving the rally. U.S. spot Ethereum exchange-traded funds have seen $402 million in inflows over the past month according to SoSoValue data.
On May 28, Bitcoin Spot ETFs recorded $432.7 million net inflows.
Ethereum ETFs recorded $84.9 million net inflows. 👀 pic.twitter.com/tOfL2DBAZb
— Crypto Crib (@Crypto_Crib_) May 29, 2025
BlackRock’s iShares Ethereum Trust brought in $53 million in just 24 hours. The fund has now accumulated $4.3 billion in total inflows since launch.
Several major institutions have made large Ethereum purchases recently. Abraxas Capital bought over 350,000 ETH worth approximately $837 million between May 7 and May 21.
The same company also withdrew 185,000 ETH from exchanges during May’s 44% price increase. This demonstrates long-term conviction from institutional players.
Trading firm DRW invested $150 million in an Ethereum ETF in April. Their Ethereum exposure now exceeds their Bitcoin holdings.
Online gambling firm SharpLink Gaming raised $425 million on May 27 to establish an Ethereum treasury. The funding round was led by ConsenSys.
Technical Analysis Shows Bullish Pattern
CryptoQuant analyst Ibrahim Cosar identified a bull flag formation on Ethereum’s chart. This pattern typically indicates potential continuation of upward momentum after consolidation.
Ethereum has traded between $2,400 and $2,700 for nearly three weeks. This range-bound trading created the conditions for a potential breakout.
The cryptocurrency remains above its 200-day Exponential Moving Average. Staying above this technical indicator historically signals positive market sentiment and often precedes price rallies.
Cosar suggests Ethereum could move toward $3,000 to $3,500 if the bull flag pattern plays out. The 50-day and 100-day EMAs are also flashing buy signals.
The Relative Strength Index sits at 71.5, approaching overbought territory. This could lead to a brief pause or pullback as the market approaches psychological levels at $2,800 and $3,000.
Market Dynamics Favor Continued Growth
Another CryptoQuant analyst noted that Ethereum’s Open Interest has not yet surpassed Bitcoin’s. When this happens, it historically marks market tops.
Current retail trading activity remains subdued compared to previous market peaks. This suggests institutional investors are primarily driving the current rally.
The lack of retail participation implies potential room for further upside. Increased retail activity could sustain and accelerate Ethereum’s momentum, similar to the 2020-2021 bull cycle.
Industry leaders are pushing for SEC approval of staking features in Ethereum ETFs. SEC Commissioner Hester Peirce clarified that Ethereum’s proof-of-stake functions are not considered securities.
If companies like 21Shares receive approval for ETF staking, additional inflows could follow. This would provide another catalyst for price appreciation.
Ethereum is currently displaying bullish momentum as it tests the upper Bollinger Band. The price remains above the $2,573 20-day simple moving average, which serves as crucial support.
If Ethereum fails to hold above $2,700, it may retest support at $2,650 or the 20-day SMA. However, a breakout above $2,800 could target $2,900 and higher levels if momentum continues.
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