- Ethereum sees $655M institutional buy as exchange outflows hint at reduced sell pressure.
- ETH holds above $2,500 support, with bullish indicators pointing toward a breakout past $4,000.
- Triangle formation since 2020 suggests a $4K breakout could trigger a sustained long-term rally.
Ethereum continues to attract attention from institutional investors and traders amid strong network upgrades and ongoing exchange outflows. With the price stabilizing above $2,500 and recent bullish momentum, analysts say $4,000 remains the most critical resistance for Ethereum. If broken, it could lead to a long-term rally.
Institutional Accumulation and Supply Reduction
According to a report by Lookonchain, a wallet linked to UK-based Abraxas Capital Management acquired over 278,000 ETH, valued at approximately $655 million. This accumulation came shortly after Ethereum’s Pectra upgrade and has already generated around $77 million in unrealized profit, based on the current trading price above $2,600.
Market data from Coingecko confirms that Ethereum held support at $2,500 during a broader market pullback. Meanwhile, Merlijn The Trader noted on X that more than 300,000 ETH had recently left exchanges. The last time this occurred, ETH prices doubled. On-chain analytics show sustained exchange outflows, indicating increased holding behavior among investors.
This trend reflects growing institutional confidence in Ethereum’s long-term structure. Fidelity’s recent $13.8 million ETH purchase on May 17, 2025, further strengthened this narrative, as reported by Crypto Rover. This purchase triggered a swift price move from $3,250 to $3,380 within hours, with a 28% surge in trading volume across exchanges.
Technical Setup Points to $4K Breakout Zone
Ethereum has been trading inside a large triangle structure since Q3 2020, according to an observation by Michael Van De Poppe. The $4,000 mark has acted as a long-standing resistance, with three rejection attempts during 2024 alone. A successful breakout above this level is seen as the gateway to a much larger rally.
Currently, ETH is holding above key moving averages and continues to form higher lows. Technical indicators such as the RSI and MACD show bullish momentum, while the Bollinger Bands suggest room for further upside.
If ETH breaks above $2,800 soon, the next major test will be the $3,000 level. Traders continue watching for volume confirmation near resistance, as breaking $4K could lead to the next phase of Ethereum’s uptrend.
