Ethereum Surges 6% in a Day as BlackRock’s New Fund Boosts Positive Crypto Sentiment
Ethereum Surges as BlackRock Sparks Fresh Institutional Demand
For weeks, the market focus around Ethereum was not on price, but on supply. ETH reserves on exchanges kept falling, more coins were being locked in staking, yet the price continued to decline and many investors overlooked the signals. This week, that changed.
Ethereum (ETH) is now trading at US$1,719, gaining 6.4% in the past 24 hours and nearly 9% over the week, making it one of the strongest-performing major cryptocurrencies in the market.
The biggest catalyst behind the rally came from BlackRock, the world’s largest asset manager, which recently launched a new staked Ethereum fund called ETHB. The product immediately attracted US$100 million in inflows on its first day of trading.
This launch is significant because unlike previous Ethereum ETFs, BlackRock’s new product allows investors to earn around 3% staking yield, generated from helping secure the Ethereum network. Until now, this yield feature had been seen as one of Solana’s advantages, but Ethereum now has a similar institutional product backed by one of the biggest names in global finance.
The strong first-day inflows also signal that institutional investors may be returning to Ethereum after months of weakness across crypto investment products.
At the same time, Ethereum’s supply conditions have become increasingly tight. Data shows ETH reserves on exchanges have dropped to an all-time low of around 14.5 million ETH, while the amount of Ethereum locked in staking has reached record highs.
In simple terms, less ETH is available for trading. When fresh demand enters the market while supply remains limited, prices tend to move sharply higher.
The rally was also supported by a broader crypto short squeeze, which triggered around US$281 million in bearish liquidations, alongside positive macro sentiment after the Fed Chair signaled that inflation pressures may be easing.
However, investors should remain cautious. Ethereum is still down more than 60% from its 2025 peak near US$4,950, meaning the latest rally has not fully reversed the longer-term bearish trend.
From a technical perspective, US$1,800 remains the key resistance level. If ETH manages to break above that area, the next major target could be US$2,000. On the downside, strong support sits around US$1,650 to US$1,600.
For now, Ethereum is experiencing one of its strongest rallies in months. BlackRock’s new investment product has become an important signal that institutional interest in ETH is starting to recover, although the market is still waiting for stronger confirmation of a larger bullish reversal.
