Ethereum (ETH) has demonstrated significant strength, propelled by a powerful combination of favorable macroeconomic data, robust institutional adoption, and pivotal ecosystem developments. The crypto asset surged towards the $3,000 mark after positive developments in U.S.–China trade relations and a softer-than-expected U.S. Consumer Price Index (CPI) report ignited broad risk-on sentiment. The rally began to build momentum on Tuesday evening, around 8 p.m. ET, when reports emerged of a draft trade framework between the U.S. and China. This news pushed ETH from its holding pattern around $2,770 to approximately $2,780 on growing spot volume.

Macro Tailwinds Propel Ethereum Towards $3,000 Resistance

The bullish momentum intensified significantly on Wednesday morning. At around 8:30 a.m. ET, the U.S. Labor Department's May CPI report showed a mere 0.1% month-on-month increase, undercutting economists' forecasts of 0.2%. This cooler inflation data fueled speculation that the Federal Reserve might consider interest rate cuts later in the year, leading to a weaker U.S. dollar and a rally in risk assets. In this favorable macro environment, Ether vaulted from the upper-$2,780s to an intraday high of $2,873.46. This powerful move was validated by a massive surge in spot volume, with approximately 527,000 ETH, valued at around $1.47 billion, changing hands during the spike, confirming strong buying pressure.

Institutional Inflows and On-Chain Metrics Signal Supply Squeeze

Beneath the surface of the macro-driven price action, Ethereum's fundamental and on-chain picture remains exceptionally strong, pointing to a potential supply squeeze. According to a report from CoinShares, Ether investment products have seen cumulative year-to-date inflows of nearly $2.9 billion, with $429 million flowing in over just one recent week. This trend is further exemplified by BlackRock's reported accumulation of $500 million over the past ten days and a 16-day inflow streak for ETH exchange-traded funds totaling nearly $900 million. This sustained institutional demand is occurring as the liquid supply of ETH diminishes. The amount of staked ETH has climbed to a record high of over 35 million tokens, representing approximately 28.7% of the total supply. This, combined with declining balances on exchanges, suggests that more investors are holding ETH for the long term, reducing the available supply for trading and potentially amplifying upward price movements.

Ecosystem Milestones: Robinhood L2 and EthCC Boost Confidence

Confidence in Ethereum's long-term scalability and utility is also being bolstered by significant developments within its ecosystem. Retail trading giant Robinhood announced its development of a proprietary Layer-2 network using Arbitrum's rollup technology. While still in development, the plan to eventually support Ethereum staking and other advanced financial products on this L2 is a major vote of confidence in Ethereum's roadmap. Further innovation was highlighted by Ethereum co-founder Vitalik Buterin, who introduced a new digital identity framework leveraging zero-knowledge proofs for enhanced privacy. This progress is showcased at events like the Ethereum Community Conference (EthCC), which recently gathered over 6,400 attendees, signaling a vibrant and active developer community committed to building the future of the network.

ETH Technical Analysis: Navigating Key Support and Resistance Zones

From a technical standpoint, ETH has established a clear uptrend. The recent push to a higher high at $2,873 confirms an accelerating up-channel that began in early June. The initial breakout above the $2,800 level was confirmed with the day's largest volume candle, validating the move. Traders are now watching key levels closely. Immediate support has formed in the $2,750–$2,760 range. A hold above this band is crucial for maintaining bullish momentum. Prior to this leg up, ETH established a solid base between $2,438 and $2,523, which now serves as a stronger, secondary support zone. On the upside, the first major hurdle is the $2,900 resistance level, followed by the significant psychological target of $3,000. A decisive close above this level could open the door for a test of the next resistance near $3,120. The ETH/BTC pair, currently trading around 0.02276, shows a slight pullback, indicating that traders should also monitor ETH's relative performance against Bitcoin as it attempts its next major move.