Recent observations have found a structural shift in the capital flow at the asset allocation level. Ethereum, as an infrastructure-type asset, is gradually transitioning from a 'high volatility alternative coin' to a 'core allocation asset'. Signs of this transition have emerged in multiple aspects.
First, institutional allocation ratio rises
In the past two weeks, there has been a continuous net inflow into funds tracking Ethereum, with most of the incoming capital coming from institutional-grade products and strategic investment portfolios. This indicates that mid-term investors have reassessed the risk/reward ratio of Ethereum and chosen to increase their allocation.
Continuous capital inflow for over two weeks, with a total amount reaching a high unit of hundreds of millions of dollars, reflecting a shift in capital's attitude towards ETH from 'trading' to 'allocation'.
Second, price structure stabilizes and provides support
Currently, ETH is in a consolidation range around $2,500. Although there has been a short-term pullback, buying interest is seen as prices fall. The balance of bullish and bearish forces has been relatively established in the short term, indicating a consensus on Ethereum's valuation at this price level.
Technical observation: with $2,430–$2,460 as mid-term technical support, if there are no systematic risk impacts, this area is expected to form a structural bottom.
Third, derivatives and spot markets are actively synchronized
Not only has buying interest in the spot market strengthened, but the number of open contracts in Ethereum's futures market has also continued to grow, indicating that investors are not only participating through spot but also making directional layouts using leveraged tools.
CME's ETH futures open interest (OI) has risen over 15% in the past two weeks, marking the largest monthly increase since the end of 2024.
Fourth, fundamental expectations form medium to long-term support
The market maintains a high level of attention on Ethereum's upgrade plans (including modular architecture, Layer 2 solutions, and Rollup development). These technological improvements reduce costs and enhance throughput, potentially increasing network demand and transaction fee income in the long term, further strengthening ETH's intrinsic value as an asset!
🎯 Strategic conclusion: Ethereum enters a structural revaluation cycle
Comprehensive observation: Currently, ETH exhibits the following three characteristics:
Improved chip structure: Short-term speculative strength weakens, long-term capital ratio rises
Volatility compression: Prices return to the equilibrium zone, slightly bullish but not overheated
Fundamentals strengthen: Technology and ecology evolve synchronously, with medium to long-term growth potential
For strategic investors, the current market conditions are favorable for establishing mid-term positions and adding on dips. If subsequent capital inflows continue and break through the $2,700 resistance zone, it may trigger the next phase of price reassessment.