Ethereum surpassed $2,700 for the first time since February, up nearly 5% over the last 24 hours, trading at $2,736 at press.
The move has expanded an impressive recovery, with Ethereum (ETH) up 53% over the past month after a rough first quarter when prices fell more than 45%. The main drivers behind the rally appear to be growing institutional interest.
According to SoSovalue data, the US Spot Ethereum Exchange-Traded Funds has collected $402 million inflows over the past month. BlackRock’s Ishares Ethereum Trust alone also brought in $53 million, boosting the cumulative inflow to $4.3 billion.
Some industry leaders are currently driving the Securities and Exchange Commission and are endorsing staking for Ethereum ETFs. SEC Commissioner Hester Pers recently revealed that Ethereum’s demonstration function features, such as node operations and verification, are not considered securities. If ETF staking requests from companies like 21 shares are approved, there could be a more influx.
This trend is further emphasized by the large ETH purchases made by the institution. More than 350,000 Ethereum worth approximately $837 million was purchased by Abraxas capital between May 7th and May 21st. Additionally, he plucked 185,000 ETH from the exchange during a 44% price rise in early May, showing a long-term conviction.
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In early April, trading company DRW invested $150 million in Ethereum ETFs, creating a headline that outweighed Bitcoin (BTC). In another indication of adoption growth, online gambling company Sharplink Gaming raised $425 million on May 27th, led by Consensys, to establish the Ethereum Treasury Department. The news sent a surge in 400% stake, with Ethereum co-founder Joseph Rubin on the company’s board of directors.
On the daily charts, Ethereum is currently showing bullish momentum when testing the upper bollinger band. The price is still above the 20-day simple moving average of $2,573, which serves as an important level of support for the gathering. The ETH forms an elevated wedge pattern. This can show continuance once the $2,800 resistance is exceeded.
ETH price analysis. Credit: crypto.news
The 50-day and 100-day EMAs, and most of the other important moving averages, are flashing purchase signals. The relative strength index at 71.5 indicates that ETH may be approaching the territory where it was acquired. In particular, as the market approaches the $2,800 and $3,000 levels, there may be a short pause or pullback coming.
Ethereum can retest support for $2,573 if you can’t maintain $2,573 or more for $2,700 on a 20-day SMA. However, if momentum continues, breakouts above $2,800 could be over $2,900.
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