Ethereum Hits $2,800 as Institutional Demand Builds
Ethereum (ETH) is currently trading at $2,800, reaching this level for the first time since February. The recent rise follows a strong single-day gain of more than 8%, reflecting renewed interest from institutional investors and growing activity across the network.
The price surge has been supported by major financial players entering the market. Asset management giant BlackRock reportedly bought $500 million worth of ETH over a span of ten days. This level of institutional buying is a strong signal of long-term confidence in Ethereum’s potential, and it’s playing a major role in driving price momentum.
In addition to these large-scale purchases, the amount of ETH being staked on the network has reached a new all-time high. Around 34.65 million ETH is now locked in staking contracts. This reduces the supply available on exchanges and, as demand rises, supports a natural price lift.
Even though Ethereum is still trading about 43% below its record high of $4,721, its move above $2,800 could pave the way for further gains. Market watchers are now eyeing the $3,000 mark as the next major price target.
Image 1 (Source: Unsplash)
Technical Signals Show Strength
Ethereum’s recent price action is being backed by strong technical indicators. The cryptocurrency has crossed above both its 200-day and 50-day simple moving averages (SMAs), which are currently at around $2,660 and $2,287, respectively. These breakouts often point to a shift in longer-term momentum and are watched closely by traders and analysts.
The Relative Strength Index (RSI), a tool that helps gauge whether an asset is overbought or oversold, is sitting at 65. This level suggests the market remains in a healthy position, with room to grow before signs of overheating appear.
Open interest in Ethereum futures has also jumped significantly. Over the past month, it has increased from $26 billion to $36 billion, according to data from CoinGlass. This 40% rise indicates more traders are entering the market and committing capital, which often adds to upward pressure on price.
Image 2: (Source: Unsplash)
ETF Inflows and Layer-2 Activity Boost Ethereum’s Profile
Institutional demand is also being seen through inflows into Ethereum spot ETFs. Since 16 May, these ETFs have taken in around $837.5 million worth of ETH. While this may seem modest when compared to average daily trading volumes, it marks consistent demand from professional investors seeking long-term exposure to the asset.
Ethereum continues to lead the decentralised finance (DeFi) sector by a wide margin. With over $66.6 billion in total value locked (TVL), Ethereum holds about 61% of the entire DeFi market. No other blockchain has come close to matching that dominance, despite occasional hype around alternative platforms.
Layer-2 solutions have further strengthened Ethereum’s position. Designed to make transactions faster and cheaper, these scaling networks include Base, Arbitrum, Polygon, and Unichain. Combined, they processed over $70 billion in decentralised exchange (DEX) volume over 30 days. Including Ethereum’s base layer, total DEX activity across the ecosystem reached nearly $137 billion. That stands far above competing networks such as Tron and Avalanche, each of which handled just over $4 billion in the same period.
Read Also: Bitcoin Outflows Grow While Ethereum ETFs Attract Fresh Capital: Is Investor Sentiment Shifting?
Market Supply Tightens as Sentiment Grows
Beyond trading volumes and price charts, Ethereum’s fundamentals are showing clear signs of strength. The total amount of ETH held on centralised exchanges has fallen to about 16.33 million — the lowest level on record. At the same time, around 28.3% of all ETH in existence is now being staked. This significant lock-up in supply means fewer tokens are available for sale, helping to drive prices higher when buying interest rises.
Crypto analyst Michaël van de Poppe has pointed out that Ethereum’s rise is also benefiting the broader altcoin market. According to him, ETH’s momentum is lifting smaller tokens as well, indicating a healthier market overall.
Unfortunately, $ETH didn’t give me the entry.
It’s primed to break to the upside and it’s now taking the smaller #Altcoins with it.
A great market environment. pic.twitter.com/RRp4zF61Rk
— Michaël van de Poppe (@CryptoMichNL) June 10, 2025
Earlier in May, Ethereum experienced a strong rally, jumping 48% between the 7th and 14th of the month. That rapid gain came during a period when buying demand outpaced selling activity, showing that many holders were not interested in taking profits even as the price rose. That same trend now appears to be continuing, supported by strong on-chain activity and institutional backing.