Institutional Demand Supports Ether Rally Amid Mixed On-Chain Signals

Ether (ETH) has demonstrated renewed strength, sustaining a price above $2,300 and distancing itself from the March 29 lows of $1,940. This recovery is underscored by a significant surge in futures open interest, which has climbed to $25.4 billion, reflecting a 26% increase in leveraged positioning. While the price action appears bullish, the underlying drivers are split between institutional spot buying and cautious derivatives traders. The rally is primarily supported by US-listed spot Ether ETFs, which recorded $248 million in net inflows over the last 10 days, and aggressive corporate treasury moves. Bitmine Immersion (BMNR US) recently expanded its holdings with a $312 million ETH acquisition, bringing its total treasury to 4.87 million ETH, valued at approximately $11.46 billion. Despite this, the firm's holdings are currently trading 13% below their acquisition cost, and overall ETF assets under management have declined to $13.7 billion from $20.5 billion three months prior. Fundamental headwinds persist, specifically within the decentralized application (DApp) ecosystem. Weekly DApp revenue has fallen from $24 million in early February to $11 million, as competition from networks like Hyperliquid and Plasma intensifies. Furthermore, perpetual futures funding rates have frequently dipped below 0%, indicating that many traders remain skeptical of a sustained breakout above the $2,400 resistance level.