Ethereum is making headlines again, breaking out of a months-long downtrend as U.S. spot Ethereum ETFs attract a remarkable $837 million in net inflows over the past 15 trading days. This surge in investment signals renewed confidence from both institutional and retail investors, positioning Ethereum as a focal point in the evolving crypto landscape .
Ethereum’s Technical Turnaround
After defending key support levels between $2,400 and $2,500, Ethereum’s price has stabilized and is now consolidating above its 20-day simple moving average, currently near $2,560. Technical indicators, such as the narrowing Bollinger Bands, suggest reduced volatility and hint at the potential for a stronger directional move. The price action above these averages reflects underlying buyer strength and a shift in market sentiment .
ETF Inflows: A Sign of Institutional Interest
Since May 16, spot Ethereum ETFs in the U.S. have recorded 15 consecutive days of positive inflows, totaling $837.5 million—about a quarter of all net inflows since these products launched in July 2024 . BlackRock’s ETHA fund leads the pack, with nearly $600 million added during this streak, while the combined assets of Grayscale’s Ethereum ETFs surpass $4 billion . This consistent inflow stands in contrast to Bitcoin ETFs, which have experienced more volatile flows in recent weeks .
What’s Driving the Surge?
Several factors are fueling this renewed interest in Ethereum:
• Institutional Rotation: Analysts note a possible shift in institutional focus from Bitcoin to Ethereum, driven by Ethereum’s expanding role in smart contracts and decentralized applications .
• Network Upgrades: The recent Pectra upgrade has further increased institutional confidence, even if user activity hasn’t yet caught up .
• DeFi Growth: Ethereum’s total value locked (TVL) in DeFi protocols has jumped 21% in the last month, reflecting growing engagement from both investors and users .
Key Resistance and Future Outlook
With the downtrend broken, Ethereum now faces resistance in the $2,800–$2,900 range—a zone where previous rallies have paused. A successful breakout could open the door for a retest of the $3,000 level, with some analysts projecting a move toward $4,000 or even higher by year-end if momentum continues .
Comparing to Bitcoin
While Bitcoin ETFs have seen inconsistent flows, Ethereum’s steady ETF inflows highlight a narrative shift and growing confidence in its long-term value proposition . This trend could signal a broader rotation of institutional capital within the crypto sector.
