Ethereum nears new breakout amid 46% growth

Ethereum has strengthened its position, adding 46% over the past 30 days to reach $2630. Analysts attribute the growth to robust demand for spot ETFs and improving market structure, pointing to the possibility of an upward breakout.

According to Michael van de Poppe, the key support for ETH is $2400, while resistance is formed around $2680-$2850. Overcoming these levels, he believes, may lead to a new annual maximum. Rekt Capital analyst added that it is critical to consolidate above $2500.

Crypto Eagles noted the similarity of the current chart to the 2016-2017 growth phase. He admits that ETH will “easily cross” $6,000. The ETH/BTC pair rose to 0.02499, up 41.5% from April’s low, indicating growing interest in altcoins.

Analysts note that ETH/BTC is consolidating in the range of 0.022-0.026. If there is an upward breakout, it may strengthen the position of altcoins relative to bitcoin. The dynamics of this pair remains key for the whole market.

Institutional investors continue to build positions in ethereum. Net inflows into Ethereum-ETFs in the U.S. have been seen for 12 consecutive days. CoinShares reported $321.4 million in inflows into ETH-based funds during the last week of May.

Bernstein earlier named three factors contributing to Ethereum’s growth: institutional demand, increased DeFi activity and protocol updates. All of them reinforce expectations of further upward movement.