Ethereum eyes recovery rally as institutional giants offload BTC for ETH

Ethereum appears to be gaining momentum again, supported by growing institutional interest and a potential shift in market sentiment. 

At press time, Ethereum (ETH) is trading at $2,634, up 1.2% in the past 24 hours. This comes after a minor pullback from its local high of $2,771 set on May 29, which saw ETH drop to $2,482 before recovering. Notably, ETH is still up 44% over the past 30 days, making a solid comeback after a 45% drop in Q1 2025. 

New on-chain data from Lookonchain, shared on June 3, shows that BlackRock recently reduced its Bitcoin (BTC) holdings in favor of Ethereum. Fidelity made similar moves. Combined, the two asset managers sold around $180 million in BTC from their ETF holdings. Rather than pulling out of crypto, they rotated into ETH, purchasing 30,000 tokens worth roughly $78 million.

That trend was echoed across the broader ETF market. Ethereum-based funds recorded $109 million in inflows on the same day, according to SoSoValue data. The shift may be linked to growing interest in Ethereum’s yield potential. As U.S. regulators inch closer to approving staking-based products, ETH’s income-generating properties are becoming more attractive to large investors.

Traditional firms are also starting to treat Ethereum as a reserve asset. Nasdaq-listed SharpLink Gaming raised $425 million to begin accumulating ETH for its treasury. The round was led by ConsenSys, and Ethereum co-founder Joseph Lubin is joining the company’s board. U.K. asset manager Abraxas Capital added to the momentum, increasing its holdings of Ethereum to more than $800 million.

From a technical perspective, Ethereum is beginning to show signs of a breakout. The price remains above significant moving averages, including the 10-day EMA at $2,585 and the 20-day SMA at $2,568. The 200-day SMA, which is slightly higher at $2,676, is the only major resistance. 

Momentum indicators are neutral, with the relative strength index at 62.3 and the stochastic RSI at 26.5. The tightening of Bollinger Bands indicates less volatility. ETH is holding close to the top of the Bollinger bands range, suggesting that bullish pressure is still present.

Further upside would be indicated by a daily close above $2,700, while a decline below $2,500 might cause a pullback toward the 30-day EMA at $2,447.