Ethereum (ETH) finds itself at the center of both bullish optimism and bearish trepidation as it continues to push higher amidst an evolving regulatory environment. Recent data shows strong inflows into Ethereum-based Exchange Traded Funds (ETFs) while price consolidates around the important 2000 resistance level. This is happening as new political and regulatory developments perhaps make the case for institutional investment in this cryptocurrency even stronger.

Ethereum ETF Market Shows Signs of Revival

The Ethereum ETFs, in particular, have been bouncing back strong, notching up a healthy $104.1 million in net inflows on Friday alone. This increase has brought a positive weekly net inflow of $157.1 million. It represents the first full week of inflows for these investment vehicles since February. The inflows are an indicator of renewed investor confidence in Ethereum as a legitimate asset class.

Interestingly, the bulk of these inflows were laser-focused on specific ETFs. Fidelity’s FETH, BlackRock’s ETHA and Grayscale’s ETH showed the most activity. These funds have garnered impressive demand from investors looking to capture Ethereum’s price performance without holding the underlying crypto asset.

This new wave of ETF mania may be more than just hype and could indicate a larger change in market sentiment for Ethereum. After months of uncertainty and regulatory scrutiny, investors are looking at ETH with new optimism. They’re taking another look at its potential as a smart long-term investment.

Price Consolidation and Key Resistance Levels

Even with all the bullish ETF data, Ethereum’s price action has been a little lackluster. Both moves come as the cryptocurrency now retests the $1,800 key resistance level. Buyers and sellers are uniquely locked in a tug-of-war at this critical juncture.

Rejection shown by the formation of multiple small-bodied candlesticks in succession at this level suggests an unwillingness to commit from market participants. Position, in which neither bulls nor bears have managed to gain a clear upper hand, resulting in a price consolidation as the elbow approach indicates.

Technical indicators are another window into this ongoing tug of war. In technical analysis, the Awesome Oscillator (AO) is one of the most popular indicators used by traders to help determine overall market trend strength. A daily close of the AO above its neutral level could be the first indication of increasing bullish momentum for Ethereum. More auspiciously, the AO has just breached above its midline for the first time in 2025. Either way, this movement may be an early indication of a shift in the long-term tide.

Regulatory and Political Factors Influence Institutional Interest

Outside of the technical analysis, there are other factors at work on Ethereum’s recent price action. It sure looks like institutional buying pressure is a direct result of what’s happening in the political and regulatory realm.

President Trump’s newly revealed willingness to maintain a less incendiary approach to trade relations with China is another. This change in tone has taken the edge off anxiety over global economic turbulence. It has further inspired institutional players to deploy funds into riskier asset classes, including Ethereum.

The other big change on the horizon is Paul Atkins’ expected appointment as Securities and Exchange Commission (SEC) Chair. Atkins has a deep background in working with crypto companies. Consequently, most of the crypto community is looking forward to a friendlier disposition towards, and regulation of, cryptocurrencies with him at the helm. This expectation has led to increased interest from institutions in Ethereum. The creation of a friendlier regulatory environment would help reduce the overall perception of risks of investing in this emerging asset class.

Liquidation Data and Market Sentiment

Analysis of liquidation data offers more perspective to Ethereum’s recent price activity. Indeed, $45.18 million in ETH futures contracts were liquidated in the last 24 hours, showing a frenzied trading environment during this turbulence.

$15.37 million worth of long positions and $29.82 million worth of short positions were liquidated. This indicates that there are more short traders who were betting against Ethereum that were recently surprised by the price swings.