Institutional Inflows Fuel Ethereum Rally as Spot ETFs See $125M Reversal

3 hour ago 3 sources positive

Key takeaways:

  • Institutional inflows into ETH spot ETFs suggest a strategic shift towards viewing Ethereum as a core infrastructure asset.
  • The positive Coinbase Premium indicates U.S. institutional demand is a primary driver of the current rally above $2,000.
  • Traders should monitor the $2,150 resistance level; a breakout could target $2,400, but an RSI near 70 signals potential for a short-term pullback.

Ethereum (ETH) has surged past the $2,000 psychological level, trading near $2,063, following a significant reversal in institutional investment flows. According to data from SoSoValue, Ethereum spot ETFs recorded a substantial daily net inflow of $125.87 million on February 25, marking a decisive end to weeks of sustained institutional outflows. This influx pushed the total net assets of these products to $11.14 billion.

The institutional buying spree was even more pronounced earlier in the week, with a single session on Wednesday seeing $157 million funneled into Ethereum investment products—the largest daily inflow since mid-January. This capital movement preceded a sharp 15% price rally that saw ETH reclaim the $2,000 level. Analysts note this pattern suggests deliberate institutional positioning rather than retail-driven speculation, with large asset managers quietly absorbing supply.

From a technical perspective, Ethereum's price is testing key resistance levels. The rally has pushed the price to test the 0.382 Fibonacci resistance level at $2,021. Momentum indicators show the 4-hour MACD has crossed into bullish territory, and the Relative Strength Index (RSI) sits at 69.66, approaching overbought conditions. The Keltner Channels are signaling a potential breakout, with the next major resistance seen near $2,150. A clean break above this level could open a path toward $2,400.

Supporting the bullish momentum, on-chain and market data show open interest surged 16.60% to $27.24 billion, while trading volume jumped 51.49% to $73.62 billion. Furthermore, the Coinbase Premium flipping positive indicates increased buying pressure from U.S.-based investors. The narrative shift towards Ethereum's role in tokenization and real-world asset (RWA) ecosystems is cited as a fundamental driver behind the renewed institutional interest.

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