From 01:00 to 01:15 (UTC) on June 7, 2026, ETH saw a short-term surge within 15 minutes, with a return of +1.40%. The price ranged from 1564.23 to 1587.33 USDT, with a 1.48% amplitude. Against the backdrop of continued tightening of macro liquidity earlier and the Fed’s relatively hawkish tone weighing on risk assets, this move signals a partial, temporary restoration of market sentiment, drawing attention from short-term traders.
The main driving force behind this move is that the deleveraging process is nearing its end. The weekly month-over-month decline in open interest in futures dropped 7% to $6.7 billion, while the funding rate fell from an early peak of +0.03% to a neutral level. More than $650 million worth of crypto was liquidated within 72 hours, including $130 million in long ETH positions. Speculative leverage has been significantly cleared, laying the groundwork for a technical rebound.
In addition, continued institutional inflows provide important support. The spot ETH ETF recorded a net inflow of $356 million in April 2026, ending a streak of six consecutive months of negative growth, led by BlackRock and Fidelity. The number of large ETH addresses (over 10,000 ETH) rose to 1,155, indicating that long-term institutional investors are accumulating positions. On the supply side, conditions are also tightening: about 30%–35% of circulating ETH has been staked. Exchange reserves saw a net outflow of more than 108,000 ETH, and the reduced sellable supply may offer bottom support to price.
Volatility risks still need to be watched closely. The US Dollar Index remains at relatively high levels, and US 10-year Treasury yields are holding at 4.08%, while a tightening macro liquidity environment could limit upside room. The ETH/BTC ratio is near a seven-month low, and Bitcoin dominance is at 53.2%, suggesting the market may be in the early phase of the transition where ETH starts outperforming the broader market after BTC stabilizes. Key support to watch is $1,560, with resistance in the $1,600–$1,650 range. Short-term traders should closely monitor the continuity of spot ETH ETF inflows, changes in exchange ETH reserves, and the trajectory of funding rates.
