- Ethereum has surged past $2,700, driven by strong institutional inflows and growing interest in staking ETFs.
- Ethereum’s bullish momentum suggests a possible breakout toward the $3,000 price level if key resistance at $2,800 is surpassed.
Ethereum (ETH) has made a notable comeback, climbing above the $2,700 mark for the first time since February. Over the last 24 hours, ETH surged nearly 5%, trading around $2,736 at press time. This move extends Ethereum’s strong recovery after a tough first quarter that saw its price plunge over 45%. Over the past month, Ethereum has rebounded an impressive 53%, largely fueled by increasing institutional interest.
Institutional Inflows Boost Ethereum
A key catalyst behind Ethereum’s rally is growing investment from institutional players. U.S. spot Ethereum ETFs have seen inflows totaling $402 million in the past month alone, according to SoSoValue data. BlackRock’s iShares Ethereum Trust has been a major beneficiary, drawing $53 million in inflows within the past 24 hours and accumulating $4.3 billion overall.
There’s mounting optimism that the U.S. Securities and Exchange Commission (SEC) may soon approve staking for Ethereum ETFs. SEC Commissioner Hester Peirce clarified that Ethereum’s proof-of-stake mechanisms, including node operations and validation, do not classify as securities. Should staking ETFs from firms like 21Shares get the green light, Ethereum could see even more institutional inflows.
Big Players Increasing Exposure
Institutional buying isn’t limited to ETFs. Abraxas Capital, for instance, bought over 350,000 ETH (worth around $837 million) between May 7 and May 21 and pulled 185,000 ETH off exchanges during a recent price surge, signaling strong long-term conviction. Similarly, trading firm DRW invested $150 million in an Ethereum ETF in April, surpassing its Bitcoin holdings.
Adding to the bullish sentiment, online gambling company SharpLink Gaming recently raised $425 million, led by ConsenSys, to create an Ethereum treasury—boosting ETH’s visibility and utility.
Technical Outlook: Is $3,000 Next?
Technically, Ethereum is showing strong bullish momentum. It’s trading above key support levels, including the 20-day simple moving average ($2,573), and is testing resistance near $2,800. The price is forming a rising wedge pattern, which often signals continuation if ETH breaks above $2,800.
However, the relative strength index (RSI) at 71.5 suggests ETH may be nearing overbought territory, hinting at a possible short-term pullback or consolidation before pushing higher. If ETH sustains above $2,700, a test of $2,900 and potentially $3,000 could be on the horizon.
