Ether (ETH) is navigating a complex and contradictory market landscape, where significant institutional selling pressure from spot exchange-traded funds (ETFs) is being met with resilient technical support on the price charts. The divergence between institutional flows and spot market activity presents a nuanced picture for traders, highlighting key levels and potential rotation plays. On Friday, U.S.-listed spot ETH ETFs experienced their largest single-day net outflow for the month of June, shedding a collective $11.3 million. This data, reported by Farside Investors, points to a cooling sentiment among some large-scale investors who utilize these regulated products for their crypto exposure.

The headline outflow figure was driven almost entirely by a single issuer. BlackRock’s iShares Ethereum Trust (ETHA) recorded a substantial $19.7 million outflow, marking its first and only day of negative flows since its inception. This move by a major player could signal profit-taking or a strategic reduction in exposure ahead of anticipated market volatility. However, the picture was not uniformly bearish. Grayscale’s Ethereum Trust (ETHE) continued to attract capital, pulling in $6.6 million in new funds. Similarly, VanEck’s ETHV ETF saw a modest inflow of $1.8 million. The fact that other issuers saw no activity suggests that while some large holders are selling, others are either holding firm or selectively buying the dips, creating a state of equilibrium that is keeping the market on edge.

ETH Price Rebounds Sharply From Technical Support

Despite the bearish institutional signal from ETF flows, the ETH/USD spot market told a different story. On Friday, during the 17:00 UTC hour, Ether experienced a dramatic sell-off, plunging to a session low of $2,372.85. This sharp drop was accompanied by an explosive spike in trading volume, which surged to nearly five times the daily average. Such high-volume capitulation events often mark a local bottom, as they exhaust selling pressure and attract opportunistic buyers. That is precisely what happened, as the price swiftly rebounded from the lows. A critical support zone rapidly formed between $2,420 and $2,430. This level was subsequently tested multiple times on progressively lower volume, a classic technical sign that sellers were losing momentum and buyers were establishing control in this price range.

Cross-Asset Dynamics and Key Resistance

As Ether stabilized and began to form an ascending trendline of higher lows, traders turned their attention to key resistance and relative performance. The immediate hurdle for ETH sits at the psychological and technical confluence between $2,480 and $2,500. A decisive break above this zone would be needed to invalidate the recent bearish pressure and signal a continuation of the uptrend. However, analyzing trading pairs reveals potential headwinds. The ETH/BTC pair registered a 24-hour decline of 1.688%, indicating that Ethereum was underperforming Bitcoin. This suggests that during the recent market uncertainty, capital has favored the relative safety of BTC over ETH.

Furthermore, the dynamic with other Layer 1 blockchains is telling. The SOL/ETH pair posted a strong gain of 2.595%, highlighting a potential capital rotation from Ethereum into Solana. SOL itself demonstrated robust trading activity, with the SOL/USDT pair seeing over $3.5 billion in 24-hour volume, dwarfing the $184 million on the ETH/USDT pair. This relative strength in SOL suggests that traders are seeking higher beta opportunities and may perceive Solana as having a more compelling short-term narrative. For ETH traders, this means not only watching the USD price but also keeping a close eye on the ETH/BTC and SOL/ETH ratios, as they provide crucial insights into market-wide capital flows and sentiment shifts that could impact Ether's next major move.