- On-chain data analysis shows a renewed demand for Ethereum by corporate investors and U.S. spot Ether ETFs.
- Capital rotation from Bitcoin to Ethereum has signaled the onset of the 2025 altseason.
- ETH price has approached a crucial resistance level around $4k, which could yield a parabolic rally or a fresh correction.
The institutional demand for Ethereum (ETH) has outperformed that of Bitcoin (BTC) in the past few weeks. President Donald Trump-backed World Liberty Financial (WLFI) has led corporations with aggressive accumulation of ETH for treasury management.
According to on-chain data analysis, a wallet associated with World Liberty Financial spent $23 million to buy 6,145 ETH at an average price of $3,743. Since Ethereum rallied above $3,000, in the past 6 days, World Liberty Financial spent $36 million to buy 10,013 ETH at an average price of $3,595 across 3 addresses.
Related: Ethereum Gains Favor as a Corporate Treasury Asset Beyond Bitcoin
This aggressive buying is part of a larger trend. Since mid-May, the U.S. spot Ether ETFs, led by BlackRock’s ETHA, have recorded a net cash inflow of more than $5 billion.
Why institutional demand for Ethereum is rising
The renewed demand for Ethereum from institutional investors is largely driven by the global need for tokenization and newfound regulatory clarity. The Ethereum network remains a top blockchain for real-world asset (RWA) tokenization, which has gained significant traction led by stablecoins.
According to market data analysis from defillama, the Ethereum network has seen its total value locked (TVL) increase to $83 billion and its stablecoins market cap rise to over $130 billion. The recent passage of the GENIUS Act, which regulates stablecoin payments, mainly benefits the Ethereum network.
The renewed demand for Ethereum is also bolstered by the anticipated 2025 altseason. Furthermore, the ETH/BTC pair has recorded a rising trend, characterized by a macro higher high and higher low for the first time since September 2022.
The major test for ETH’s price is now at $4,000
After a 66% rally over the past four weeks, the price of Ethereum has now approached the first major resistance level around $4,000. This is a historically significant barrier, with the price having been rejected from this level more than seven times since May 2021.
Related: Eric Trump’s Controversial ETH Prediction Ends Up in Profit
From a technical analysis standpoint, the Ethereum price needs to consistently close above $4k to rally towards its all-time high. The bullish sentiment has the upper edge, especially with the weekly MACD line having crossed the zero line amid rising bullish histograms.
Additionally, the weekly Relative Strength Index (RSI) surged towards the 70 level for the first time since January 2025.
However, a failure to hold above $4,000 in the coming weeks could invalidate the bullish sentiment. On the daily timeframe, ETH’s price has been forming a rising channel and is now approaching the upper border, which could signal a potential short-term correction.
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