Ethereum holds above $2,500 as institutional inflows rise and bulls defend key support at $2,395. Will ETH retest $2,699 next?

The broader crypto market remains muted as tensions in the Middle East escalate. Ethereum holds ground around $2,500, with lower price rejections suggesting bullish support at lower levels. Amid these conditions, will institutional support revive a bullish trend in Ethereum?

Ethereum Price Analysis

On the daily chart, Ethereum’s price shows a declining trend from last week. It is currently subsiding slightly above the 38.20% Fibonacci level at $2,395. At present, Ethereum trades at approximately $2,522.

The lower price rejections, evident in the long wicks of the daily candles, suggest bullish support at lower levels and increase the possibility of a trend reversal.

Additionally, the support level at $2,395 has remained intact since early May, further increasing the chances of a reversal and supporting the upside potential. However, momentum indicators present a contradictory view.

The declining MACD and signal lines are approaching the zero line, signaling a surge in selling pressure. Meanwhile, the daily RSI remains flat at the midpoint level.

A potential reversal in Ethereum could test the 50% Fibonacci level at $2,699. However, a close below the 38.20% Fibonacci level could extend the decline toward the $2,000 psychological mark.

Institutions Still Acquiring Ethereum

Despite the recent fall in Ethereum, institutional support continues, with only a minor outflow of $2.18 million recorded on June 13 over the past five weeks. According to SoSoValue data, U.S. Ethereum spot ETFs recorded a total net inflow of $11.09 million on June 17. The trend continued on Wednesday with a $19 million inflow.

Overall, the monthly inflow for June so far amounts to $860 million, the highest in 2025. Therefore, with rising institutional support, demand could soon translate into a spot-priced rally in Ethereum.

Ethereum Derivatives

CoinGlass data shows a decline in bullish activity in the Ethereum derivatives market, with open interest down 2.29% to $34.73 billion. The increased liquidation of bullish traders over the past 24 hours appears to have triggered a capital withdrawal from Ethereum derivatives.

Data shows that $35.40 million worth of long positions were wiped out in 24 hours, compared to $27.44 million in short liquidations. This results in a long-to-short ratio of 0.9673, suggesting a marginally higher number of active short positions.