Ethereum Tests $2,600: Institutional Inflows Drive Market Recovery Despite Year-Long Underperformance
Ethereum (ETH) is displaying signs of renewed strength, testing $2,600 on Monday after holding crucial support at $2,500 over the weekend.
Quick overview
- Ethereum (ETH) is showing renewed strength, testing $2,600 after holding support at $2,500 over the weekend.
- Institutional demand for Ethereum has surged, with $583 million in weekly net inflows, marking the best performance since December 2024.
- Ethereum exchange reserves have hit an all-time low, indicating strong accumulation by long-term holders and whales.
- Technical indicators suggest a potential bullish reversal for ETH, with cautious optimism for price targets between $2,800 and $3,600 by year-end.
Ethereum (ETH) is displaying signs of renewed strength, testing $2,600 on Monday after holding crucial support at $2,500 over the weekend. The world’s second-largest cryptocurrency by market capitalization, ETH/USD, continues to trade above this key psychological level, demonstrating resilience despite significantly underperforming Bitcoin BTC/USD and other digital assets throughout 2025.
Institutional Demand Reaches New Heights with Record ETF Inflows
The latest price movement is happening at the same time as a huge increase in interest from institutions. Ethereum investment products are getting $583 million in weekly net inflows, which is their best performance since December 2024. This momentum has brought in an incredible $879.1 million so far this month, and it’s quickly getting close to the $1 billion monthly milestone that would be a big step forward for institutional Ethereum adoption.
The US spot ETH exchange-traded funds were the leaders of this institutional surge. They brought in $528.12 million and had a 19-day streak of positive flows until seeing small outflows of $2.18 million on Friday because of tensions in the Middle East. The continued buying pressure from institutions shows that they are becoming more confident in Ethereum’s long-term future, especially when it comes to staking chances and impending network upgrades.
ETH Exchange Reserves Hit All-Time Low as Whales Accumulate Aggressively
Ethereum exchange reserves have dropped to an all-time low of 18.57 million ETH, down from 18.72 million ETH over the weekend. This supports the bullish story. This big drop in the amount of supply on exchanges usually means that long-term holders are buying a lot and holding onto it.
Whale activity is making the accumulation trend even stronger. On Sunday, addresses holding between 1,000 and 10,000 ETH added approximately 818,000 ETH (about $2.5 billion) to their wallets. This is their biggest single-day accumulation since 2018. The total amount of ETH held by this group has grown from 11.9 million to 16 million, showing that institutions still have faith in the currency even though its price has been falling recently.
ETH/USD Technical Analysis: Potential Golden Cross Formation
Ethereum is showing a number of strong signs from a technical point of view that could mean a long-term rebound. The cryptocurrency is making a “golden cross” pattern on its daily chart, where the 50-day exponential moving average is getting close to crossing over the 200-day EMA. In the past, this technical pattern has come before big price increases, and the last time it happened, prices rose by 35% in a matter of weeks.
All four of the main exponential moving averages (20, 50, 100, and 200 days) are now below the current price. This shows that there is a lot of bullish momentum. The Stochastic RSI has changed direction just above the oversold level, which means that the price could keep going up.
Ethereum futures open interest is getting close to $40 billion. This shows that derivatives traders are becoming more interested in the asset and that they are becoming more confident in its short-term prospects.
Ethereum Price Prediction: Cautious Optimism Amid Strong Fundamentals
Even though there have been good technical and fundamental changes, market professionals still have cautious hopes for the price of Ethereum. Tracy Jin, COO of the cryptocurrency exchange MEXC, said that ETH might trade between $2,800 and $3,600 by the end of the year. If ETF staking permissions and network developments speed up, it could go much higher.
If support stays above $2,600 in the near future, it could challenge the $2,800 resistance level again. If bullish momentum keeps going, goals could be $3,000 and $3,200. But if they can’t hold the $2,500 support level, the price could drop down to the $2,400 support zone.
Ethereum may be on the cusp of a big recovery because of the confluence of institutional adoption, a lower supply on exchanges, aggressive whale accumulation, and good technical signs. This might allow it to catch up to Bitcoin’s performance after months of underperformance. But investors should still be careful because the cryptocurrency has dropped 24% this year and the industry as a whole is sensitive to happenings in other countries.
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