- Ethereum’s network velocity hits 8.0506, nearing historic highs, signaling active network use even amid price consolidation.
- Institutional inflows push ETH ETF holdings to 3.51M ETH, with BlackRock and Fidelity leading the charge on weekly accumulation.
- ETH trades above its True Market Mean at $2,400, with analysts eyeing $3,000 as the next key resistance on strong technical structure.
Ethereum’s network velocity has reached 8.0506, nearing its historical peak of 8.3, signaling a resurgence in demand. The rising velocity aligns with a recovering price, currently at $2,548.81, up from a recent low below $1,500.
Velocity Surges While Price Rebounds
According to a post by Coinvo, Ethereum’s price trajectory has frequently mirrored its velocity, with a previous rise from $2,000 to $3,500 seen as velocity climbed from 6.5 to 7.25. Both price and velocity peaked simultaneously when Ethereum hit $3,900, after which price declined while velocity continued its ascent.
That divergence widened when the price dropped under $1,500 while velocity rose past 8.0, showing Ethereum’s usage remained high despite price corrections. Market experts interpret this as renewed network utility driven by decentralized finance (DeFi), NFT activity, and scaling protocol adoption.
ETF Inflows Strengthen Institutional Confidence
The ETF flows further underscore renewed institutional interest in Ethereum. As of May 22, Ethereum ETFs collectively hold 3.51 million ETH worth $9.05 billion, with daily net inflows totaling 10,358 ETH. The leading issuer, iShares Ethereum Trust, recorded a 1-day inflow of 21,245 ETH and a 7-day accumulation of 43,599 ETH, pointing to aggressive exposure strategies.
These ETFs offer regulated access to spot ETH via custodians like Coinbase and BitGo, with strategic objectives centered on capturing upside from Ethereum 2.0 staking, gas fee revenues, and EVM ecosystem growth. Fidelity’s Ethereum Fund also drew notable inflows: 15,984 ETH in one day, showing a clear institutional preference.
On-Chain Metrics Indicate Bullish Recovery
Glassnode data adds further bullish confirmation. Ethereum broke above its Realized Price of $1,900 and currently trades above the True Market Mean of $2,400, placing most holders in profit. Analysts say reclaiming the Active Realized Price at $2,900 is crucial to regaining long-term holder confidence.
The Realized Price remained stable during price turbulence, showing strong conviction among long-term wallets. Simultaneously, the liveliness-adjusted price near $3,000 suggests that seasoned holders value ETH at higher levels than the market currently reflects.
Analysts Expect Breakout Toward $3,000
Ethereum continues forming higher lows and stair-stepping upward along a trendline from May 20. Current support holds near $2,430, while resistance stands at $3,007, a breakout level tested previously but not cleared.
Failed breakdowns and strong buy-side reactions suggest buyers remain in control. Market analysts expect that if velocity remains elevated and ETF inflows continue, Ethereum may soon test $3,000 again, solidifying the ongoing trend reversal.
