Ethereum investment products have recorded net inflows for the seventh consecutive week, reaching $296.4 million. The increasing adoption of stablecoins is reshaping the institutional narrative around public blockchains, boosting interest in Ethereum ETFs. Invesco has submitted an application to the SEC to allow staking within its Ethereum ETF, and approval could further accelerate inflows. Meanwhile, ETH is retesting its ascending trendline resistance after three previous unsuccessful attempts to break through.
Why Ethereum ETFs Are Gaining Momentum
Global Ethereum-related investment products maintained positive momentum last week, with net inflows hitting $296.4 million. These products have now seen seven consecutive weeks of inflows, totaling $1.5 billion.
"This represents the strongest inflow since the U.S. elections last November and marks a significant recovery in investor sentiment," wrote James Butterfill, Head of Research at CoinShares, in a Monday report.
U.S. spot Ethereum ETFs—led by BlackRock’s iShares Ethereum Trust (ETHA)—accounted for the majority of inflows, contributing $281.3 million and marking 15 consecutive days of positive flows.
According to Bernstein analyst Gautam Chhugani, the growing interest in ETH ETFs can be attributed to increasing attention on stablecoins and tokenization from both the U.S. Congress and major fintech institutions like Visa, Mastercard, and Stripe.
In a Monday note to investors, analysts emphasized that the potential widespread use of stablecoin payments is changing how investors perceive public blockchain networks like Ethereum and their native cryptocurrencies.
"Investors often tell us—crypto is useless, but blockchain is valuable. But it's not one or the other," the analysts wrote.
"If you believe in stablecoin-based payment innovation, why wouldn’t the Ethereum network—which mints stablecoins and processes their transactions—hold value? Any company using stablecoin technology pays transaction fees to the Ethereum network. Now there is utility and value accumulation. We believe the value narrative of public blockchain networks is at a critical inflection point and is beginning to reflect in investor interest through Ethereum ETF inflows," they added.
This outlook comes as the U.S. Senate moves closer to voting on the GENIUS Act in the coming weeks, which aims to provide regulatory clarity for stablecoins.
ETF inflows may also be driven by heightened expectations that the SEC could approve staking within U.S. spot Ethereum ETFs, especially after the agency’s Corporate Finance division stated on May 29 that certain staking activities do not fall under securities laws.
On Monday, Cboe BZX submitted an application to the SEC to allow staking within the Invesco Galaxy Ethereum ETF, joining other firms like Fidelity, Grayscale, Bitwise, and 21Shares that are also awaiting regulatory decisions.
"Based on discussions with the sponsor, the Exchange proposes to amend multiple sections of Amendment No. 1 to the Ethereum ETP to allow for staking of the ether held by the Trust," the filing stated.
Meanwhile, the Ethereum Foundation (EF) is undergoing restructuring, establishing new teams focused on financial policy and protocol research.
Ethereum Price Analysis: ETH Retests Key Resistance
Ethereum futures saw $21.4 million in liquidations over the past 24 hours, with long and short positions liquidated amounting to $300,000 and $21.07 million, respectively.
Over the past three days, the top altcoin broke above its ascending trendline resistance after facing earlier rejections. If ETH can sustain above this trendline, it could challenge the $2,750–$2,850 resistance zone. The 200-day Simple Moving Average (SMA) has also been acting as dynamic resistance, suppressing the price since May 13. A break above this level is essential for ETH to begin a new upward trend.
On the downside, ETH may find short-term support near $2,400. Further below, the $2,250–$2,100 range—supported by the 50-day SMA—could serve as strong support if ETH falls below $2,400.
The Relative Strength Index (RSI) remains above neutral and is approaching its moving average. Meanwhile, the Stochastic Oscillator (Stoch) is rising toward its midpoint. A crossover above their respective moving averages and neutral levels could strengthen ETH’s bullish momentum.
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Frequently Asked Questions
What is driving the recent inflows into Ethereum ETFs?
Growing institutional interest in stablecoins and tokenization, combined with anticipation of regulatory approvals for staking-enabled ETFs, is fueling investor confidence and inflows.
How might SEC approval of staking in Ethereum ETFs impact the market?
Approval could attract more institutional investors seeking yield-generating opportunities, potentially increasing demand for ETH and supporting higher price levels.
What key resistance levels is Ethereum currently facing?
ETH is testing its ascending trendline resistance and the 200-day SMA. A break above $2,850 could signal the start of a stronger bullish trend.
What are the main risks for Ethereum in the short term?
Failure to hold above $2,400 could lead to a test of lower support near $2,100–$2,250, especially if market sentiment turns negative.
How do stablecoins influence Ethereum’s value proposition?
Stablecoin transactions generate network fees for Ethereum, creating utility and value accumulation for ETH holders and enhancing its appeal as a blockchain platform.
What role does the GENIUS Act play in Ethereum’s future?
The act aims to provide clear regulations for stablecoins, which could encourage broader adoption and strengthen Ethereum’s use case in payments and finance.
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