Ethereum on the way to a high: Institutional purchases are driving up the price!

Ethereum on the way to a high: Institutional purchases are driving up the price!

On May 31, 2025, Ethereum is at a crucial point in its price development. Recent chart analysis shows Ethereum price forming a symmetrical triangle, with a key breakout zone at $2,900. Loud The Market Periodical A breakout above this level could lead to a rally towards $5,000. This prediction is supported by significant institutional buying, which is increasing interest in the Ethereum price.

In the last few days, major institutional investors including BlackRock and Fidelity have purchased over 33,000 ETH worth $88.7 million. These purchases are particularly notable: BlackRock purchased 18,803.16 ETH for $50.4 million, while Fidelity purchased 14,288.91 ETH for around $38.3 million. The purchases come in a context of discussion about Ethereum ETFs, fueling additional interest and confidence in the network.

Institutional purchases and market analysis

An analysis of the market shows increasing demand and bullish sentiment among investors. Ethereum whales have accumulated over 1 million ETH in 48 hours, while wallets holding 100,000 to 1 million ETH are seeing a significant increase. This accumulation coincides with Ethereum price trending towards $2,700, and support above $2,580 remains in place despite high volatility.

Technical analysis suggests that ETH price is testing the upper trendline near $2,900. A breakout of this zone on higher volume could attract more buyers, marking a crucial turning point. MikybullCrypto is observing an ascending triangle pattern that shows bullish momentum. Nevertheless, the price is struggling to break the $2,695 mark and is trading at $2,609 at press time, down 3.17% on the day.

Long-term challenges for Ethereum

Despite the positive price predictions, there are also challenges affecting the Ethereum network. Loud Crypto Magazine Layer2 projects have withdrawn revenue from Ethereum, calling into question the long-term financial viability of the network. While low transaction costs following upgrades have increased the use of DeFi and NFTs, there are concerns that Ethereum must continue to evolve to remain competitive.

In addition, there is a change in the perception and use of cryptocurrencies among users who benefit from the lower fees. While some are optimistic about the future and are discussing price targets of up to $8,000 for Ethereum, there is also skepticism about the sustainability of these targets and the psychological aspects of trading, including fear of missing out on opportunities (FOMO).

In this dynamic landscape, Ethereum remains an exciting topic for investors who need to keep an eye on both the opportunities and challenges as the price and interest in the platform continues to grow.