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Key Insights
- Ethereum price broke out of a falling channel and is forming a bullish continuation flag.
- BlackRock and Galaxy bought $360M worth of ETH through OTC deals and ETFs.
- Breaking above $2,708 could trigger liquidation of $303M in short positions, possibly pushing the price up.
Ethereum price has gained bullish momentum as whale activity increases. Institutional accumulation is also driving market optimism. A confirmed chart breakout sets the stage for a potential rally toward $3,500.
When writing, the ETH price was around $2,640, up 1.3% daily. Recent on-chain data suggests Galaxy Digital and BlackRock have made significant purchases of Ethereum. Positions held by short-selling investors are reducing, while long exposure is rising.
Ethereum Price Prediction: Whales accumulate $283M ETH Amid ETF Demand
On-chain tracker Lookonchain reported that a whale or institution acquired 108,278 ETH (worth $283 million) through an OTC transfer. The purchase followed Galaxy Digital’s withdrawal of 89,000 ETH ($233.5M) from exchanges, which was then sent to wallet 0x0b26.
The wallet currently has 139,476 ETH, which is worth $365 Million. This surge in demand isn’t isolated. On June 3, BlackRock purchased an additional 29,580 ETH, valued at about $77.1 Million.
This brought its total ETH holdings to over $4 billion. The considerable holdings demonstrate that organizations are increasing their confidence in Ethereum’s future.
Frequent large trades on the OTC market usually mean someone establishes a long-term position, not making short-term bets. A decline in ETH held in exchanges often leads to less available liquidity. This can increase the Ethereum price.
Ethereum Price Bull flag and falling channel breakout signal trend reversal
Per Bitconsensus, ETH price has broken out of a long-term falling channel that had defined its downtrend since Q1 2025.
The breakout occurred after a bullish engulfing candle confirmed the reversal. Ethereum price is now forming a bull flag pattern on the daily chart. Many technical analysts consider this a continuation setup.
The pattern emerged after the top altcoin price rose above the $2,400 it had as support. Now, this level is crucial to maintain. Should the current bull flag be broken, the Ethereum price could reach $3,500.
This level matches a key place of historical resistance and a significant psychological level for traders to watch. Notably, a major transition away from recent bearish trends is seen in the new structure.
Buying pressure could remain strong if the ETH price breaks out of its flag pattern. Rising ETF momentum may draw increased institutional investment.
Liquidation Heatmap Shows Short Squeeze
Data from market heat maps showed that since ETH liquidations, there has been a buildup of ETH short positions. CW data showed that the Ethereum price nearing $2,708 could trigger liquidations. Over $303 Million in short positions would be wiped out at that level.
Now, this level is attracting buying and selling activity. Short traders may close positions early as the ETH price approaches this zone. This could create an effect of buy orders that further accelerate price gains.
The chart suggested that most open positions are long, noting the bullish market sentiment. New short positions reflect lingering uncertainty among traders. The chances of a short squeeze increase as the Ethereum price continues to climb.
Ethereum Price Outlook
Meanwhile, the Ethereum price held above $2,625, with a market cap of $316.94 Billion. ETH price bounced back after reaching around $2,590. It is now making higher intraday highs, indicating positive trends.
More so, trading volume is holding strong at approximately $16.5 Billion, and the ratio of ETH/BTC has become steady. Since supply is shrinking on exchanges and institutions are holding more ETH, ETH’s short-to-medium term outlook is bullish.
Large accumulation, ETF purchases, and the bullish flag pattern provide a good base for a further rally. Ethereum price faces key resistance at $2,708, followed by $2,850. If momentum continues, the main target for traders is $3,500.
