In recent times, Ethereum (ETH)
$
2,789, a major player in the cryptocurrency market, seems to be under pressure according to charts. However, behind the scenes, it is signaling signs of recovery. Over the past 24 hours, ETH has risen by 6.35%, although it has lost 26.75% of its value in the last year. The seasoned analyst, known as “Bonk Guy” or Unipcs, has identified seven core reasons that could trigger a strong rally for ETH soon. Key developments pointed out include the constant investment influx in Ethereum ETFs, companies adopting ETH as a treasury asset, and the potential staking approval for ETFs.
Ethereum ETFs Attracting Increased Demand and Corporate Adoption
One of the main reasons behind the optimism regarding ETH’s price is the continuous and growing inflow of investments into Ethereum ETFs. Data from Coinglass reveals that Ethereum ETFs have experienced net investment inflows for 15 consecutive days. Notably, on June 3, the funds received a daily investment of $109.5 million, the highest daily influx recorded within the month. BlackRock’s ETHA led the daily standings with $35.2 million, followed by Fidelity’s FETH with $12.9 million and Grayscale’s ETH fund with $4.6 million.
On the institutional front, a notable trend is emerging. Companies are beginning to add Ethereum as a direct treasury asset to their portfolios. A standout example of this approach is SharpLink Gaming’s implementation of one of the largest Ethereum treasury plans in public markets, closing a $425 million private placement led by ConsenSys Software. This move is seen as a signal of corporate adoption similar to Strategy’s Bitcoin 
$ 109,761-focused approach.
Technical and Ecosystem Factors Supporting Price
Other critical developments that could positively impact Ethereum’s price are being monitored. According to the analyst, regulatory signals indicate that ETH staking approval within ETF structures could happen soon. Such an approval could open the door for significant institutional investment and act as a major rally catalyst for Ethereum. Additionally, Unipcs notes that many funds and traders are currently shorting ETH. If the price starts moving upward, a short squeeze could occur, compounding the price increase.
Moreover, network data is highly positive. Weekly active Ethereum addresses are reaching record levels, strengthening the growth potential and user engagement in the long term. Another crucial indicator is the rapidly decreasing supply of ETH on exchanges. This suggests that investors are moving their assets to cold wallets or staking them. Data shows significant outflows from major exchanges like Bitfinex (-572,946 ETH), Coinbase Pro (-2,149 ETH), OKX (-13,627 ETH), Kraken (-6,428 ETH), and Bithumb (-19,572 ETH). A total of 261,000 ETH exited exchanges, including Binance and Coinbase.
Growth is also continuing across the ecosystem. Currently, over 34.6 million ETH are staked, indicating a significant portion of the total supply is locked. Moreover, booming growth rates of Layer 2 solutions like Base signal increased scalability and mainstream adoption of Ethereum.
