Ethereum has amassed $425 million in capital from SharpLink Gaming’s treasury allocation. The largest altcoin has attracted large volumes of institutional capital inflows to ETFs in the past week. Whales and institutions have attempted to reinstate confidence among traders, however the process has proven painfully slow.
We dive deeper and find out why traders are not buying Ethereum’s (ETH) new narrative and what it will take for ETH to break out of the consolidation and hit a new all-time high this cycle.
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Ethereum ETF flows and whale accumulation
Ethereum Spot ETFs have attracted consistently large inflows from institutional investors in the last four weeks. Data from crypto intelligence tracker SoSoValue shows that the daily total netflow to Ethereum ETFs exceeds $11 million.
Ethereum ETFs recorded a large spike on June 11 with a daily net inflow that exceeds $240 million. This week the inflows have been relatively below average, expected to pick up in the latter half, amidst recent bullish developments.
Ethereum net inflows | Source: SoSoValue
Data from crypto intelligence tracker Glassnode shows that the daily whale accumulation has exceeded 800,000 Ether. The Ethereum holdings of whales that own 1,000 to 10,000 Ether have exceeded 14.3 million Ether, as of June 16. June 12 alone recorded the highest daily net inflow, where large wallet investors added over 871,000 Ether.
Ethereum whale net position change for addresses holding between 1K and 10K ETH | Source: Glassnode
Crypto analysts at Cryptorank observed that the scale of whale accumulation seen in this cycle is unusual and has not been seen since the beginning of the bull run in 2017. Starting H2 2024, whales have been accumulating ETH, with the trend rising sharply in the last four weeks, supporting a bullish thesis for Ether.
Whale accumulation of Ethereum | Source: Cryptorank
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In Ethereum they trust- Trump Media’s dual Bitcoin and Ethereum ETF filing
Trump Media and Technology Group (DJT), an American technology giant headquartered in Florida boasts US President Donald Trump as a majority owner. The company filed for a dual Bitcoin and Ethereum ETF on June 16, with a 75% allocation to BTC and 25% to ETH.
In its SEC filing, Trump Media listed Crypto.com as its custodian and liquidity provider, pending regulatory approval. If the US financial regulator approves the product, it would be the first dual-spot crypto ETF backed by the President of the United States.
Experts believe Ethereum’s inclusion in the dual ETF is not a mere coincidence, rather a show of confidence amidst the rising institutional interest in Ether. World Liberty Financial, another entity backed by the Trump family, has slowly reduced its exposure to Ether since its launch, raising concerns whether the Ethereum allocation is a gesture at best; there is no data on the private crypto holdings of Trump family members.
Why traders aren’t buying the new Ethereum narrative
The Trumps showed their support for Ethereum, ETH received a $425 million capital allocation, but market participants remain largely unmoved. It almost seems like traders aren’t buying the new Ethereum narrative.
SharpLink bought 176,000 Ether for $425 million, and allocated the altcoin to their treasury. While the firm became the largest corporate holder of Ether, it ushered in a steep decline in its stock price.
SharpLink Gaming stock performance | Source: Yahoo Finance
SharpLink Gaming’s filing likely confused shareholders and led to the correction. Irrespective, there is a lack of confidence among market participants, and neither Ethereum’s price nor SBET has recovered since the announcement.
Joe Lubin and executives from Consensys have attempted to publicly reassure stockholders and ETH traders; however, the stock is down 4.47% since the market opened on Wednesday.
At a time when the Ethereum Foundation has worked on its narrative, changed the leadership, organizational goals and Vitalik Buterin shifted focus to technical development. So far, there is no significant impact on ETH price, and the altcoin is consolidating close to key support at $2,400.
Ethereum believers have added the SharpLink treasury’s purchase as a key catalyst for Ether, alongside institutional interest in Ether, the changed roadmap and upcoming technical upgrades.
Evidence is in the on-chain data. With no significant spike in active addresses, staking growth or the token’s price, Ether struggles at the time of writing.
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Ethereum price forecast
Ethereum is trading at $2,501, above key support at the $2,373 level on Wednesday. ETH is less than 10% away from the upper boundary of the FVG on the daily timeframe, at $2,743. A daily candlestick close above this level could push Ether towards $3,000, a psychologically important level for the altcoin.
Two key momentum indicators, RSI and MACD suggest further consolidation is likely in the short-term. RSI reads 47, slightly under the average, and MACD flashes red histogram bars under the neutral line, meaning there is an underlying negative momentum in the Ether price trend in the ETH/USDT daily price chart.
ETH/USDT daily price chart | Source: Crypto.news
Expert commentary
Sui Chung, CEO of CF Benchmarks told Crypto.news in a written note,
“Ethereum appears to be having its AWS moment — quietly but decisively establishing itself as the foundational settlement layer for on-chain financial infrastructure. We’re witnessing this transformation unfold in real time, and recent regulatory and market developments are accelerating the shift.
The SEC’s recent pivot on DeFi regulation is the latest in a string of positive developments that can act as an entry signal for institutions that have hitherto remained on the sidelines. But this isn’t just about price.
The broader context matters. The SEC’s softer stance, the success of Circle’s IPO, and stablecoin adoption by major e-commerce platforms are coalescing into a perfect storm. Ethereum is no longer just a “crypto” story — it’s becoming indispensable infrastructure. t’s not about “blockchain” anymore — not in the abstract. It’s about industrial-grade, programmable money systems. And Ethereum is leading the charge.”
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
