Ethereum Price Primed To Explode Amid BlackRock’s $53M ETH Bet?

In a much anticipated move, Ethereum price surpassed the $2,700 level for the first time since February, driven by renewed institutional demand.

The recent buying pressure comes amid a sharp rise in inflows into Ethereum-based investment products, especially exchange-traded funds (ETFs) in the United States.

Institutional Investment Drives Ethereum Price Growth

Ethereum price rose nearly 5% in the past 24 hours, trading at $2,736 at press time. Over the past month, ETH has gained 53%, recovering from a steep 45% drop in Q1 2025.

Data from SoSoValue indicates that spot Ethereum ETFs in the U.S. have seen $402 million in inflows over the past month.

BlackRock’s iShares Ethereum Trust led the way, receiving $53 million in the last 24 hours. This brought its total inflows to $4.3 billion.

Fidelity’s FETH also attracted $25.7 million in inflows in a single day, pushing weekly ETF inflows to $84.6 million, according to Farside Investors.

Large-scale ETH purchases by firms like Abraxas Capital further strengthened bullish momentum. Between May 7 and May 21, Abraxas acquired 350,000 ETH worth over $837 million.

During the same period, it withdrew 185,000 ETH from exchanges, indicating long-term holding strategy.

ETF Staking Proposals and Regulatory Developments

The interest to extend Ethereum ETF features with the staking is growing. Certain asset managers such as 21Shares, are waiting for the U.S. Securities and Exchange Commission (SEC) to approve the staking of the Ethereum ETFs they offer.

Earlier this month, SEC Commissioner Hester Peirce explained that Ethereum’s proof-of-stake activities, including node operations and validation work, does not qualify as securities.

If staking is deemed to be approved, it could spark more institutional investors exposure to ETH which may have an effect on price dynamics.

DRW, a trading firm, reportedly invested $150 million in an Ethereum ETF, surpassing its Bitcoin holdings. Meanwhile, SharpLink Gaming announced it raised $425 million to build an Ethereum treasury. ConsenSys led the funding round, and Ethereum co-founder Joseph Lubin joined the company’s board.

Ethereum Price Technical Indicators and Derivatives Market Activity

A flag-and-pole pattern breakout on trading charts is driving Ethereum in terms of price movement. If that upward momentum continues, prices could easily drift up to as high as $3,300, analysts say.

Ethereum options valued at $2.4 billion are set to expire on May 30. They comprise $1.3 billion in call options and $1.1 billion in put options. A vast majority of the put options are set at or below $2,600 and they expire worth nothing if the price remains above that level.

Ether is still down 21% in 2025, in spite of the gains. The broader crypto market, on the other hand, has grown by 5%.

Similar to the underperformance of Bitcoin, analysts point to competition from other smart contract platforms such as Solana, BNB Chain and Tron as responsible for Ethereum’s underperformance.

Network Activity and Long-Term Outlook

While investment inflows have increased, Ethereum’s on-chain activity has declined. Data shows a drop in deposits and transactions on the network. Ethereum no longer ranks in the top 10 blockchain protocols by fees, suggesting reduced user activity.

This decline has raised concerns about inflationary pressures on ETH. However, Ethereum remains the only altcoin with an approved spot ETF in the U.S., a factor that continues to draw institutional capital.

From May 19 to May 27, Ethereum ETFs received $287 million in net inflows, underlining continued demand.

The derivatives market also shows a rise in open interest and trading volume. According to Coinglass, ETH options open interest stands at $8.98 billion, with daily volume up over 30% to $1.10 billion. Futures and options trading activity reflects higher market engagement ahead of the monthly expiry.

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