Key Points
- Institutional support for Ethereum continues to grow despite recent market pullback.
- Increased accumulation by whales and ETFs like BlackRock could potentially drive a bull run in Ethereum prices.
Despite the recent downturn in the crypto market, the unwavering institutional support for Ethereum continues to grow.
Ethereum is currently at a critical juncture, struggling to maintain its dominance above the $2,600 level.
Institutional Interest in Ethereum
There’s an increasing possibility of a downfall, yet institutions continue to accumulate Ethereum at discounted prices.
The question arises, will this rising demand eventually trigger an Ethereum bull run?
On February 11, US Ethereum spot ETFs saw a daily net inflow of $12.5 million.
While most Ethereum ETFs remained neutral, BlackRock continued to demonstrate its support for Ethereum.
On the same day, BlackRock acquired $12.5 million, bringing its net assets to $3.53 billion.
Since its inception, the Ethereum ETF has recorded a cumulative net inflow of $4.44 billion, reflecting BlackRock’s substantial support for the leading altcoin.
Whale Accumulation Boosts Ethereum Demand
In addition to BlackRock, Donald Trump’s World Liberty Financial recently made another Ethereum purchase.
The firm spent 5 million USDC coins to buy 1,917 Ethereum tokens.
Alongside Ethereum, the fund also spent 470,000 USDC to purchase MOVE tokens.
Over the past two days, the fund has spent 940,000 USDC to acquire a total of 1.634 million MOVE tokens.
Apart from its recent interest in MOVE, Trump Liberty Finance holds a total of $48.43 million worth of Ethereum, amounting to 18.53K Ethereum tokens.
Beyond ETFs and large financial firms, crypto whales have also increased their interest.
Crypto analyst Ali Martinez highlighted that Ethereum whales have accumulated 600,000 Ethereum over the past week.
Between February 2 and February 9, the balance of whales holding 10,000 to 100,000 Ethereum tokens increased from 16.31 million to 16.98 million, indicating a surge of 4.1% over the past week.
Furthermore, crypto exchanges have seen a significant outflow of Ethereum supply.
In the past week, more than a million Ethereum tokens have exited the exchanges, indicating increased accumulation by holders and potentially leading to a significant reduction in selling pressure.
This shift in landscape could potentially favor an Ethereum bull run.
Technical Outlook: Ethereum Holding Key Support
From a technical viewpoint, crypto enthusiast Ted Pillows shared a recent analysis of the Ethereum price trend.
As Ethereum prices return to their weekly support trendline, the chances of a bullish comeback are in the balance.
The $2.1K candle with a massive low price rejection was considered a capitulation candle, and since then, the prices have stabilized with lower volatility.
However, as long as Ethereum maintains dominance above its weekly trendline, the possibility of a bullish comeback remains on the chart.
Furthermore, the price chart shared by Ted Pillows forms an ascending triangle pattern with the overhead resistance near the $4,000 mark.
Hence, a positive cycle within the triangle could potentially lead Ethereum into the overhead supply zone.
