Ethereum has cemented its position as Wall Street’s favorite altcoin, thanks to record institutional inflows and increasing institutional demand. The cryptocurrency has experienced nine consecutive weeks of positive spot ETF inflows, reclaiming ground against Bitcoin (BTC) and reaching a key psychological level of $3,000. This increase is a testament to the deep and abiding institutional confidence in Ethereum’s potential and its ever-growing integration into traditional financial portfolios.

A mix of unexpected factors is fueling the current price increase. Perhaps most importantly, though, unprecedented inflows into Ethereum ETFs and massive institutional demand are driving this growth. Ethereum’s BlackRock ETF just saw the largest inflow in history of $300 million. This latest wave speaks to the strong interest from institutional investors. This is especially true considering corporate treasuries and other large entities have poured billions into Ethereum, adding even more rocket fuel to its upward trajectory. As a result, crypto inflows have skyrocketed to record heights. Ethereum is one of the most visible indicators of this, proving the technology’s growing mainstream acceptance and adoption.

Technical indicators point to a likely pullback in the short-to-intermediate term. ETH/USDT 12-hour chart RSI is at an extremely robust 77. This indicates that the cryptocurrency might be in overbought territory. The flip side of this positive momentum on Ethereum is the risk of bearish divergence. Traders are eyeing thick liquidity walls overhead at $3,000, with some price targets reaching as high as $3,200 if bulls can keep up the trend.

Analysts warn that if the bullish sentiment continues, then the thin liquidity zone above $2,880 could tempt profit taking. There’s hope for buyers to retake the drivers seat before long, even following this brief retreat. Ethereum is up for the third consecutive day against Bitcoin in the ETH/BTC trading pair. This streak could be an indicator of a bullish changing of the guard in market leadership. The next major test for Ethereum now will be to hold its ground and stay above the $3,000 mark. To be successful, it requires sustained institutional commitment and strong market appetite.