Institutional Interest Returns to Ether as Spot ETF Inflows Hit 10-Day Streak

Ether (ETH) is seeing a resurgence in institutional demand, with spot ETFs recording ten straight days of net inflows totaling $633 million. This trend comes as traders attempt to regain momentum following a volatile period that saw the asset drop significantly earlier in the year. While the inflows are a positive signal, ETH continues to struggle to maintain levels above $2,400. The asset remains down 22% year-to-date for 2026, underperforming the broader cryptocurrency market, which has declined by 14% over the same period. Network activity remains a primary concern for long-term valuation. Weekly revenue from decentralized applications (DApps) on the Ethereum network fell to $13 million in April, a nearly 50% decrease from six months prior. This trend is mirrored across the sector, with aggregate weekly blockchain DApp revenue dropping from $130 million in October 2025 to $73 million. Derivatives markets further reflect a cautious outlook. The annualized ETH monthly futures basis rate dropped to 1% on Thursday, falling well below the 4% neutral threshold. This suggests that professional traders are not yet aggressively positioning for a breakout. Broader risk aversion is being fueled by disappointing tech earnings. Recent volatility in AI-linked stocks, including a nearly 10% drop in IBM shares and a price target cut for Oracle due to data center costs, has dampened the appetite for high-beta assets. While Ethereum maintains its lead in total value locked (TVL) and layer-2 market share, a move toward $3,000 likely requires a broader shift in macroeconomic sentiment and a recovery in DApp activity rather than ETF inflows alone.