Ether (ETH) has demonstrated remarkable resilience, rebounding sharply after a tumultuous end to the week that was defined by significant institutional outflows and a dramatic price plunge. The market narrative shifted from bearish pressure to bullish momentum over the weekend, underscoring the intense volatility and dynamic nature of the current crypto landscape. While institutional sentiment appeared shaky, retail and opportunistic buyers stepped in to defend critical price levels, setting the stage for a potential trend reversal.

Institutional Jitters: ETH ETFs See Record June Outflows

The primary catalyst for last week's bearish sentiment came from the spot Ether ETF market. On Friday, U.S.-based spot ETH ETFs recorded their largest single-day net outflow for the month of June, totaling $11.3 million, according to data from Farside Investors. This outflow was predominantly driven by BlackRock’s IBIT ETF (ETHA), which experienced its first negative flow of the month, shedding $19.7 million. This move by a major institutional player signaled a potential de-risking or profit-taking strategy, raising concerns about near-term institutional appetite for ETH. However, the picture was not entirely one-sided. Grayscale’s ETHE product managed to attract $6.6 million in new capital, while VanEck’s ETHV saw a modest inflow of $1.8 million. This divergence suggests that while some large entities are trimming exposure, others continue to see value and are accumulating, creating a complex and nuanced institutional landscape for Ethereum.

Technical Breakdown of the Sell-Off and Rebound

The institutional outflows coincided with a severe technical breakdown. On Friday, during the 17:00 hour, ETH experienced a sharp sell-off, with its price plummeting to a session low of $2,372.85. This dramatic drop was accompanied by an extraordinary spike in trading volume, which surged to nearly five times the daily average. This high-volume capitulation often marks a point of exhaustion for sellers. True to form, buyers immediately stepped in, establishing a robust support zone between $2,420 and $2,430. This level was repeatedly tested on lower volume, a classic sign of accumulation where sellers lack the conviction to push the price further down. The subsequent price action formed a clear ascending trendline, with ETH posting a series of higher lows as it began its recovery, closing Friday's session near $2,445.

A Weekend Surge Changes the Narrative

While Friday's recovery was notable, the price action over the weekend completely reset market expectations. Ether surged dramatically, blowing past the initial resistance at the $2,500 mark. Current market data shows ETH/USD trading around $2,808, a stunning 17% recovery from the Friday low. The ETH/USDT pair reflects similar strength, trading at $2,810 with a 24-hour volume of over 404 ETH. This powerful rally indicates that the dip below $2,400 was viewed as a major buying opportunity. The ETH/BTC pair also showed significant strength, rising over 5% to 0.0253, suggesting that Ether is currently outperforming Bitcoin. This rapid reversal highlights the market's sensitivity to oversold conditions and the strong underlying demand for ETH, even in the face of institutional skittishness. The key challenge for bulls now is to solidify support above the $2,800 level and tackle the next major resistance zones on the path back to $3,000.

In the broader altcoin market, Solana (SOL) also participated in the weekend recovery, though more modestly. The SOL/USDT pair is trading around $158, up approximately 3.5% in the last 24 hours. While a positive move, its performance was eclipsed by Ether's explosive rally. This divergence, particularly visible in the SOLETH pair, shows capital rotating back into Ethereum as it leads the market recovery. Traders will be closely watching if ETH can maintain its newfound momentum and pull the rest of the altcoin market, including major players like Solana, higher in the coming week.