Ethereum (ETH) Price Surges Past $2,600 as Bitwise CIO Predicts Explosive Spot ETF Growth; Is ETH the New Digital Oil?

According to @MilkRoadDaily, Ethereum (ETH) is showing strong bullish momentum, with its price surging to $2,601 on July 2 after a period of consolidation. This move is supported by significant institutional interest, highlighted by Bitwise CIO Matt Hougan's prediction that spot Ethereum ETF inflows will 'accelerate significantly in H2' due to the compelling narrative of stablecoins and tokenized stocks moving onto the network. The Etherealize group's recent report, backed by ecosystem leaders, reinforces this view, positioning ETH as 'digital oil' for a new global financial system and suggesting it is vastly underpriced. Further validating Ethereum's dominance, Robinhood confirmed it is building its 'Robinhood Chain' on Arbitrum, an Ethereum Layer-2. From a trading perspective, technical analysis from the source indicates strong support formed at $2,554, with the next key resistance level to watch at $2,800, which could unlock further gains if breached.
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Ethereum (ETH) is demonstrating significant market strength and capturing institutional attention, driven by a powerful narrative combining real-world asset tokenization, robust ETF inflows, and compelling on-chain metrics. The price of ETH surged decisively, touching $2,601 on July 2 after breaking out from a tight 16-hour consolidation phase. This upward momentum is underpinned by a growing consensus that Ethereum is evolving into the foundational settlement layer for a new digital economy, a concept often described as 'digital oil'. The ETHUSDT pair reflected this bullishness, trading at $2,596.10 with a 24-hour gain of over 5%, while the crucial ETHBTC pair climbed 4.55% to 0.02389, signaling Ethereum's outperformance against Bitcoin and a potential shift in market leadership.
Ethereum's Institutional Flywheel: ETFs, Tokenization, and the 'Digital Oil' Thesis
Institutional interest is rapidly coalescing around Ethereum's multifaceted utility. Bitwise CIO Matt Hougan provided a particularly bullish outlook on July 2, forecasting that flows into spot Ethereum ETFs will "accelerate significantly" in the second half of the year. He highlighted that these products had already attracted an impressive $1.17 billion in net inflows in June alone. Hougan's optimism is fueled by what he calls an "easy-to-grasp narrative for traditional investors": the migration of stablecoins and tokenized stocks onto the Ethereum network. This sentiment was echoed by the Ethereum Foundation itself and further solidified by Robinhood's announcement on June 30 that it is building its "Robinhood Chain" on Arbitrum, an Ethereum Layer-2 solution, explicitly to "power the future of asset ownership." This convergence of major financial players and foundational technology reinforces Ethereum's central role in the tokenization of real-world assets (RWA).
Further bolstering this institutional case is a comprehensive report titled "The Bull Case for ETH," published by Etherealize, a group focused on bridging traditional finance with the Ethereum ecosystem. Backed by influential figures like Danny Ryan and Vivek Raman, the report argues that Ethereum is the essential infrastructure for a digitally native global financial system. It posits that ETH is not merely a store of value but a productive, yield-bearing asset that functions as programmable collateral and computational fuel—the 'digital oil' for the on-chain economy. The report notes that Ethereum already supports over 80% of all tokenized assets, making it the default choice for institutional deployments. Despite a minor $2.1 million net outflow on a recent Friday, which ended a record 19-day inflow streak according to data from Farside Investors, the broader trend of institutional adoption remains firmly intact, with total ETH open interest standing at a healthy $35.36 billion as of mid-June, per CoinGlass data.
Technical Price Action and Key Levels to Watch
From a trading perspective, Ethereum's recent price action provides several key technical signals. The breakout on July 2 began around 14:00 UTC, culminating in a powerful move during the 16:00 UTC hour where ETH gained 2.44% on volume that was 3.5 times the 24-hour average. This indicates strong conviction from buyers. Following the surge, a solid support level formed near $2,554, with traders successfully defending this price despite predictable profit-taking. The price action leading up to this included a V-shaped bounce from a low of $2,529 and the formation of a double-bottom structure near the psychologically important $2,500 level, which was validated by above-average volume. This structure suggests a potential reversal of the prior downtrend and the establishment of a new support base.
Currently, ETH is navigating the crucial zone between its established support around $2,500 and the next major resistance target at $2,800. The ability to hold higher lows and close near session highs, as seen in recent trading sessions, points to continued bullish momentum. For instance, in the hour between 17:40 and 18:39 UTC on July 2, ETH climbed 0.65% from $2,560.29 to $2,577.0 on a 30% volume spike, showing persistent buying pressure into the close. Traders are now watching to see if ETH can decisively breach the $2,800 resistance. A successful move above this level would invalidate recent bearish concerns and could trigger a new leg up, reinforcing the 'digital oil' narrative and potentially attracting a fresh wave of capital from investors who have been waiting for a confirmed trend change.
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