Ethereum Price Momentum Boosted by ETF Inflows

Ethereum Price- Institutional Investors Drive Ethereum Rally

Ethereum Price– According to data from crypto.news, Ethereum (ETH) surged 6.5% to reach an intraday high of $2,644 on June 3 during Asian morning trading. This rally pushed its market capitalization beyond $314.8 billion, making it the best-performing asset among the top 10 cryptocurrencies. Since hitting its year-to-date low, Ethereum (ETH) has gained nearly 86%, showcasing significant recovery.

Rising Futures Interest and Bullish Sentiment

On the derivatives side, ETH futures open interest climbed sharply to $35.67 billion, approaching all-time highs and notably above the $19.6 billion recorded in early April, as reported by CoinGlass. Binance’s long/short ratio stood at 1.8, signaling a prevailing bullish sentiment among traders. Additionally, funding rates for ETH have remained positive for over a month, further indicating strong market confidence.

Institutional Inflows and On-Chain Trends Support Growth

CoinShares data reveals Ethereum (ETH) investment products attracted $321 million last week—the highest weekly inflow since December 2024. This trend continued in U.S. markets, where spot Ether ETFs saw four consecutive weeks of positive inflows totaling over $653.9 million. Simultaneously, ETH holdings on centralized exchanges dropped to their lowest in seven years, suggesting increased long-term investor positioning.

Technical Indicators Point to Continued Strength

On the 4-hour ETH/USDT chart, the price stays above the ascending trendline and the 50-period Simple Moving Average (SMA), indicating sustained momentum. The Aroon Up indicator at 92.87% and Aroon Down at 28.57% confirm the dominance of the uptrend. A bullish MACD crossover further supports upward pressure.

If momentum holds, ETH could test resistance near $2,713 (50% Fibonacci retracement), with a potential move toward $3,000 (61.8% retracement). However, a drop below $2,500 might challenge this setup, possibly leading to a retracement toward the 200-day SMA near $2,377.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.