- Ethereum briefly climbed above $1,600 after strong corporate buying but lost its gains as ETF outflows and technical weakness weighed on the price.
- It must reclaim key resistance levels to strengthen its short-term outlook.
Ethereum briefly climbed above the $1,600 mark after fresh buying from major corporate investors. However, the rally quickly faded as selling pressure returned, highlighting that institutional accumulation alone has not been enough to reverse the coin’s broader downtrend.
Despite growing confidence from companies expanding their Ethereum treasuries, weak technical indicators, continued ETF outflows, and cautious derivatives activity continue to weigh on ETH’s price outlook.
Corporate Ethereum Buying Continues to Grow
Institutional interest in Ethereum remained strong as more publicly listed companies expanded their holdings.
Bitmine Immersion Technologies revealed that it had increased its Ethereum treasury to 5.70 million ETH, representing roughly 4.7% of Ethereum’s circulating supply. The company also disclosed that approximately $7.7 billion worth of its Ether is staked through its Made in America Validator Network. According to Bitmine, the staking strategy could generate nearly $246 million in annual rewards.
The announcement came shortly after the company joined the Russell 1000 Large Cap Index, reinforcing Ethereum’s growing appeal as a long-term treasury asset among corporations.
Meanwhile, SharpLink Gaming also added to its Ethereum reserves by purchasing 39,196 ETH worth approximately $62.4 million through over-the-counter transactions and direct market purchases. The acquisition increased its treasury to nearly 876,000 ETH, making it the second-largest publicly listed corporate holder of Ether after Bitmine.
Ethereum Ecosystem Sees Positive Developments
The buying activity coincided with several positive developments across the Ethereum ecosystem.
Bitmine, SharpLink, and Ethereum co-founder Joseph Lubin launched Ethlabs, a non-profit research and development initiative focused on improving the Ethereum network.
Developers also advanced the upcoming Glamsterdam hard fork into the devnet testing phase. The upgrade is expected to introduce features designed to improve transaction efficiency and reduce costs, including enshrined proposer-builder separation and block-level access lists.
Investor sentiment also received support from ongoing regulatory discussions in the United States. Optimism surrounding the GENIUS Act, the SEC’s Project Crypto initiative, and the Bank of England’s more flexible approach to stablecoin regulation strengthened confidence in blockchain infrastructure that relies heavily on Ethereum.
Ethereum Price Rally Loses Steam
Despite the positive news, Ethereum failed to maintain its gains. SOL briefly traded near $1,630 before falling back below the important $1,600 level. At the time of writing, Ethereum is trading near $1,586.
The rejection occurred as ETH approached strong resistance near the 78.6% Fibonacci retracement level around $1,619, limiting further upside.
Ethereum remains almost 50% below its opening price for the year and has declined by nearly 22% over the past month, showing that the broader trend remains under pressure.
ETF Outflows Continue to Weigh on Ethereum
Institutional fund flows have also remained unfavorable for Ethereum.
US spot Ether exchange-traded funds have now recorded seven consecutive weeks of net outflows. Continued withdrawals from major investment products, including BlackRock’s iShares Ethereum Trust, have outweighed the positive impact of corporate treasury purchases.
The persistent outflows suggest that broader institutional demand has yet to return despite growing interest from individual companies.
Technical Indicators Still Favor Sellers
Ethereum’s technical picture remains weak. SOL continues to trade below its 20-day, 50-day, 100-day, and 200-day exponential moving averages, a signal that sellers still control the market.
The first major resistance level sits near the 20-day EMA at approximately $1,669. A move above this level would improve Ethereum’s short-term outlook.
The 14-day RSI has recovered from deeply oversold conditions to around 35.6, indicating that selling pressure has eased. However, the indicator remains below neutral levels, suggesting buyers have not yet regained control.
Ethereum also continues to form lower highs and lower lows, keeping the broader bearish trend intact.
Can Ethereum Recover?
Activity in the derivatives market has offered little encouragement for a stronger recovery.
Ethereum’s total open interest remains around $9.4 billion, while perpetual futures open interest slipped slightly over the past day. Although futures open interest recorded a modest increase, overall positioning suggests traders are reducing leveraged exposure instead of opening new bullish positions.
Crypto analyst Daan Crypto Trades believes Ethereum may need to reclaim the $1,750 level before a more sustainable recovery can begin.
On the downside, losing support around $1,500 could expose Ethereum to another decline toward the lows recorded in April 2025.
Conclusion
Corporate investors continue to show growing confidence in Ethereum by expanding their treasury holdings and supporting the network through staking. However, the latest buying wave has not been enough to overcome persistent technical weakness and ongoing ETF outflows.
Unless Ethereum can reclaim key resistance levels and attract stronger participation from institutional investors and derivatives traders, the cryptocurrency could remain under pressure in the near term.
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