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Ethereum (ETH) is showing renewed strength in the crypto market, gaining 5.52% in the past 24 hours and trading at $2,617. This rebound comes after a critical retest of the $2,500 support level, accompanied by a significant 52% surge in daily trading volumes to $20.24 billion—signaling robust trader interest. According to popular crypto analyst Rekt Capital, this bounce from the $2,500 range could set the stage for a powerful rally toward $4,000. However, ETH must first break through the $2,900 resistance level to confirm the bullish momentum.
$ETH
— Rekt Capital (@rektcapital) June 2, 2025
Ethereum is trying to reclaim $2500 as support and solidify it as the new Range Low of the $2500-$4000 Macro Range (black-black)
Ethereum is trying to repeat history and position itself in a similar way to the green circled retest of mid-2021#ETH #Crypto #Ethereum https://t.co/QWrvwwDrbe pic.twitter.com/z2LdB5Oxen
Rekt Capital compared the current price action to mid-2021, when ETH saw similar technical setups that led to massive upside “god candle” rallies. The analyst suggests Ethereum is attempting to replicate that historical performance with a potential breakout on the horizon.
On-Chain Activity and Institutional Adoption Fuel Optimism
Supporting Ethereum’s bullish case is a notable rise in on-chain activity. The number of active Ethereum addresses spiked 17% last week, while Layer-2 dominance on the network climbed by 18%, pointing to growing network usage and scalability adoption. Meanwhile, institutional interest is ramping up. SharpLink Gaming, a U.S.-based sports betting company, has filed with the SEC to raise up to $1 billion—primarily to build an Ether treasury. The firm emphasized its intention to allocate the majority of funds to acquiring ETH, highlighting rising institutional confidence in Ethereum’s long-term value.
$ETH onchain activity is exploding.
— Mister Crypto (@misterrcrypto) June 2, 2025
This is extremely bullish.
Don’t underestimate Ethereum! pic.twitter.com/Gl8boLffKD
Ethereum ETFs Outshine Bitcoin as Capital Rotates
Another major driver behind Ethereum’s momentum is the recent surge in spot ETH ETF inflows. For 11 consecutive trading days, Ethereum-focused ETFs have reported net positive flows, with BlackRock’s ETHA leading the charge with $48.4 million on Monday, followed by Fidelity’s FETH at $29.8 million. In contrast, Bitcoin ETFs have seen increasing outflows, suggesting a possible capital rotation from BTC to ETH. Notably, staking features for these ETFs may launch soon, potentially amplifying investor interest.
Also Read: Ethereum Foundation Announces Layoffs Amid Protocol Overhaul
With bullish technicals, growing on-chain activity, and institutional demand, Ethereum appears poised for a significant breakout—possibly eyeing the $4,000 mark in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
