Ethereum reclaims $2.7K amid rising institutional interest

Ethereum has crossed $2,700 for the first time since February, rising nearly 5% over the past 24 hours to trade at $2,736 at press time. 

The move extends its impressive recovery, with Ethereum (ETH) now up 53% over the past month after a rough Q1 that saw prices drop more than 45%. A major driver behind the rally appears to be growing institutional interest. 

U.S. spot Ethereum exchange-traded funds have attracted $402 million in inflows over the past month, according to SoSoValue data. BlackRock’s iShares Ethereum Trust alone brought in $53 million in the past 24 hours, pushing its cumulative inflows to $4.3 billion.

Some industry leaders are now pushing for the U.S. Securities and Exchange Commission to approve staking for Ethereum ETFs. SEC Commissioner Hester Peirce recently clarified that Ethereum’s proof-of-stake functions, such as node operations and validation, are not considered securities. If ETF staking requests from companies like 21Shares are approved, more inflows could follow.

The trend is further highlighted by the large-scale ETH purchases made by institutions. Over 350,000 Ethereum, worth about $837 million, were purchased by Abraxas Capital between May 7 and May 21. In addition, the company pulled 185,000 ETH from exchanges during a 44% price increase at the beginning of May, demonstrating long-term conviction.

Earlier in April, trading firm DRW also made headlines for investing $150 million in an Ethereum ETF, surpassing its exposure to Bitcoin (BTC). In another sign of growing adoption, online gambling firm SharpLink Gaming raised $425 million on May 27, led by ConsenSys, to establish an Ethereum treasury. The news sent its stock soaring 400%, and Ethereum co-founder Joseph Lubin joined the company’s board.

On the daily chart, Ethereum is currently displaying bullish momentum as it tests the upper Bollinger Band. The price is still above the $2,573 20-day simple moving average, which has served as a crucial support level for the rally. ETH is forming a rising wedge pattern, which could indicate continuation if it breaks above the $2,800 resistance. 

The 50-day and 100-day EMAs, as well as the majority of other significant moving averages, are flashing buy signals. The relative strength index, which is at 71.5, indicates that ETH may be approaching overbought territory. A brief pause or pullback may result from this, particularly as the market gets closer to the psychological $2,800 and $3,000 levels. 

Ethereum may retest support at $2,650 or the 20-day SMA at $2,573 if it is unable to maintain above $2,700. However, a breakout above $2,800 could result in $2,900 and higher if momentum continues.