- Analyst Michaël van de Poppe says that to remain bullish, Ethereum needs to overcome the resistance at $2,600.
- The market might be shaken by short-term declines and weekend volatility, but institutional ETF inflows are a sign of great long-term faith in Ethereum.
- The inflows of Ethereum ETF have risen 56% higher than that of Bitcoin over the past 30 days, indicating the increasing popularity of ETH among investors.
Ethereum is at a critical stage of its price movement, and experts are closely monitoring the $2,600 area as a significant resistance area. As famous crypto analyst Michaël van de Poppe notes, this price trend is important for ETH to break through if it needs to sustain any bullish momentum.
He said in a tweet that should Ethereum be unable to move above this zone then it could probe lower price levels initially before retracing higher, particularly over the weekend when the crypto market is generally seen as highly volatile and difficult to directionally trade.
This is confirmed by his chart as ETH is seen to be struggling against the $2,600 resistance level after plunging lately.
Dip in Ethereum Short-Term is Not a Dealbreaker
ETH’s price action displays a rejection at the supply zone (red), which indicates that a lot of traders are selling at the supply zone. Van de Poppe remarked that before making another attempt at rising further, Ethereum could test lower demand areas (marked green on the chart) again.
Source: X @CryptoMichNL
He stressed on how weekends are not unfamiliar to weird price actions, and this might be the environment where such a bounce or reversal occurs. Such short-term price vulnerability, though, might not be indicative of the entire picture of where ETH is headed, thanks to the recent moves from institutional investors.
Merlijn Highlights Institutional Shift Toward ETH
Backing this narrative is another market expert, Merlijn The Trader, who pointed to Ethereum’s strong performance in terms of ETF inflows. He stated that Ethereum ETFs are seeing dominant inflows compared to Bitcoin, with ETH inflows rising by 56% over BTC’s in the last 30 days.
He highlighted that when institutions start rotating their funds, they tend to do it early, and currently, they seem to be favoring the leading altcoin.
Chart Reveals Ethereum’s Inflow Surge Over Time
Supporting his point, a chart shared in the tweet shows cumulative net flows into ETH and BTC ETFs relative to their market caps. Starting from May 9th, ETH saw a gradual increase in inflows, but around late May, it began accelerating and overtook Bitcoin.
Source: X (@MerlijnTrader)
The difference widened significantly in June, with Ethereum net flows continuing to climb, indicating strong institutional interest. Bitcoin’s flow, while positive, lags behind.
These two viewpoints paint a clear picture: while ETH faces a short-term technical hurdle at $2,600, the broader trend, especially from an institutional standpoint, is leaning bullish.
