Ethereum Surges Past $2,700,Driven by Institutional Interest
Ethereum has climbed above $2,700,marking its highest level as February. The cryptocurrency rose nearly 5% in the past 24 hours, trading at $2,736. This upward trend follows a 53% increase over the past month, reversing a tough Q1 where prices fell by over 45%.
A key factor behind this rally is the growing interest from institutions. U.S. spot Ethereum exchange-traded funds (ETFs) have seen $402 million in inflows over the past month. BlackRock’s iShares Ethereum Trust alone attracted $53 million in the last 24 hours, bringing its total inflows to $4.3 billion.
Industry leaders are now urging the U.S. Securities and Exchange commission (SEC) to approve staking for Ethereum ETFs. SEC Commissioner Hester Peirce clarified that Ethereum’s proof-of-stake functions are not considered securities. If companies like 21Shares get approval, more inflows could follow.
Institutional purchases are also boosting Ethereum. Abraxas Capital bought over 350,000 ETH, worth about $837 million, between May 7 and May 21. DRW invested $150 million in an Ethereum ETF, showing its preference for ETH over Bitcoin. SharpLink Gaming raised $425 million to establish an Ethereum treasury, with Ethereum co-founder Joseph Lubin joining its board.
On the daily chart, Ethereum shows bullish momentum. It is indeed testing the upper Bollinger Band and is above the $2,573 20-day simple moving average.A rising wedge pattern suggests a potential continuation if it breaks above $2,800. However, with the relative strength index at 71.5, ETH may be nearing overbought territory, possibly leading to a brief pause or pullback.
If Ethereum can’t hold above $2,700, it may retest support at $2,650 or the 20-day SMA at $2,573. But a breakout above $2,800 could push prices to $2,900 and higher.
