Ethereum stands before the "tsunami wave" of ETF: Is 5,000 USD still far away?

Despite Ethereum's price falling nearly 6% over the past two weeks, the inflow of funds from institutional investors continues to pour into this digital asset through ETF funds. This trend not only reflects the long-term confidence of the market but also indicates that Ethereum is gradually solidifying its key role in the global financial ecosystem.

Ethereum ETF – The "magnet" attracting capital amid market volatility

According to data from The ETF Store, Ethereum spot ETFs have recorded a 15-day streak of positive net inflows – the longest streak since the beginning of the year. In just two weeks, these funds have attracted over 800 million USD, despite the volatile price of ETH.

Source: SosovalueLeading the trend is the iShares Ethereum Trust (ETHA) issued by BlackRock – the largest Ethereum ETF in the US currently. ETHA has recorded 9 consecutive days of capital inflow, raising total assets under management to $3.7 billion and holding more than 1.5 million Ether. The fund's stock price has increased by over 40% in a month, driven by a record capital inflow of $34.7 million in just one day.

"Investors in ETHA can benefit fivefold," said Eric Jackson, CEO of EMJ Capital, reflecting optimistic expectations for the long-term potential of the Ethereum ETF as this digital asset becomes increasingly institutionalized.

Ethereum – The chosen platform in the era of digital assets

Behind the strong increase of institutional funds is the wave of transition from traditional finance to blockchain. Ethereum, with its superior smart contract capabilities and high security, is emerging as the ideal platform for asset tokenization and operating DeFi applications.

Bloomberg's chart shows that the capital inflow into Ethereum ETF funds has steadily increased throughout the first five months of 2025 - a sustainable trend despite short-term correction phases. At the same time, major technology corporations like Apple, Google, Airbnb, and X are also actively researching the integration of stablecoins into the payment ecosystem, demonstrating a strategic shift towards blockchain technology.

Recent price volatility has caused a large-scale liquidation in the Ethereum market. According to Coinglass, over 50 million USD in Short positions have been closed across all exchanges, the highest level since February 2025. In just one day, the ETH market witnessed a total liquidation of over 80 million USD in both Long and Short orders, due to unexpected fluctuations forcing traders to withdraw from the market.

Source: CoinglassHowever, instead of creating a negative trend, these fluctuations reflect a healthy cleansing of the market. Notably, the dominance ratio of Ethereum has increased to 9.3%, indicating that ETH is gradually regaining its position compared to other altcoins.

Technical signals support for a new bullish cycle

Currently, Ethereum is trading around the level of 2,510 USD, with technical indicators suggesting that the market may be preparing for a new breakout. According to analysis from Crypto General, ETH is entering the second phase of a long term bullish cycle.

The RSI indicator is recording a hidden bullish divergence, where the price is making higher highs but the RSI is forming lower lows – a technical pattern that often signals a potential return of upward momentum. The price history of Ethereum from 2021 to 2026 also shows that after each deep correction, ETH tends to accumulate and recover strongly.

Potential resistance zones are currently at the levels of 3,500 – 3,800 USD and 4,800 – 5,000 USD, corresponding to significant previous peaks. Many analysts believe that if it surpasses these thresholds, ETH could establish a new price record in 2025.

Crypto General's assessment:

"Ethereum is gradually outperforming Bitcoin and may be the leading asset in the next growth cycle. The price is expected to soon surpass the 5,000 USD mark."

Amidst the ongoing volatility in the market, Ethereum is quietly asserting its position with a continuous influx of institutional capital, a solid technological foundation, and increasingly clear application potential in traditional finance. If the current trend continues, ETH may not only recover but also establish a new milestone at 5,000 USD, marking a new chapter of development for this digital asset.

Annie