As agencies continue to double ETH, Ethereum volatility will be narrowed

Ethereum prices have consolidated nearly $2,500 as the institution quietly increases its exposure to ETH.

As of press time, Ethereum (ETH) was trading at $2,492, down 0.9% on the last day. Prices are close to $2,419 to $2,666 on the bottom edge of the recent seven-day range. Market activity appears to be picking up steam despite a slight decline.

Ethereum's 24-hour trading volume rose by more than 25% to $11.42 billion, indicating a resurgence of investors' profits. In line with this, Coinglass data shows that the amount of derivatives has increased by 21.9% to $373.6 billion, while the 1% decrease in open profits indicates that some traders are withdrawing as others' positions due to short-term volatility.

Institutional beliefs are steadily growing behind the scenes, supporting ETH's long-term narrative. Spot Ethereum ETFs are currently in the fourth consecutive inflow, reaching $281 million last week alone, according to SOSOValue data. These funds currently hold net assets of over $9.6 billion. It is clear that traditional finance is heavily allocated, not merely scratching the surface.

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That belief has been translated into a deeper play. On June 2nd, NASDAQ-listed Sharplink Gaming raised $425 million to begin accumulating ETH from the Treasury. The funding round was led by Ethereum native giant Consensy, with co-founder Josefulvin on the Sharplink board. UK-based Abraxas Capital also expanded its ETH exposure in May, bringing its total holdings to over $800 million.

Additionally, recent reports show that US banks are now allowed to wager Ethereum, which can open billions of dollars in future capital streams. The effects are beginning to show chains in chains.

Lido (LDO) ETH staking deposit jumped 5% last week to reach 9.5 million ETH. Popular crypto analyst Merlijn The Trader recently said ETH has bets across the network exceeded 32.8 million, effectively increasing its value of over $100 billion and tightening its liquid supply.

In addition to momentum, Titans in industries like BlackRock and JPMorgan are either boosting exposure or building Ethereum infrastructure.

Looking at the technical photos, the ETH is located near the lower half of the Bollinger band range. The relative strength index, located at 51 and in the neutral territory, indicates market indecisiveness. The divergence of moving average convergence shows a faint bearish signal, and the stochastic RSI tests the sold area.

Ethereum price analysis. Credit: crypto.news

Short-term SMAs and EMAs are also bearish, showing downward pressure. However, the long-term 50-day, 100-day, and 200-day moving averages remain solidly bullish, indicating that the overall trend is still in place.

Bulls aim for more than $2,700 if the institutional accumulation continues and ETH regains $2,560. In the short term, a confirmed move above $2,700 could pave the way for $2,850. If ETH cannot maintain $2,430 in support, the bear could regain control. Daily closings below this level could trigger a retest of the $2,300-$2,250 zone.

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