Ethereum has fallen for three days in a row. The price slipped to $3,152 after touching a yearly high near $3,300 earlier this month. While the pullback looks worrying at first, there are several strong reasons why ETH could recover and move higher later this year.
One major reason is heavy buying from BitMine. The company is run by Tom Lee and has been one of the most aggressive Ethereum buyers recently. In just the last 30 days, BitMine bought 278,551 ETH. Its total holdings now stand at around 4.14 million coins, worth more than $13 billion at current prices.
BitMine is not done yet. The company plans to eventually hold 6 million ETH. There is also a chance this target could increase if BitMine succeeds in expanding its share capacity in the future. Large and steady buying like this reduces supply and often supports prices over time.
Another important factor is upcoming upgrades on the Ethereum network. Developers plan to roll out two major upgrades later this year called Glamsterdam and Hegota. These are seen as the most meaningful changes since the Fusaka upgrade in December.
Glamsterdam focuses on making block production fairer and more predictable. It aims to reduce centralization risks and improve how transactions are ordered. It will also help make gas fees more stable and execution more reliable.
Hegota will bring in verkle trees. This change will lower the storage needs for nodes and make the network easier to run. In crypto markets, prices often rise before and after major network upgrades as confidence improves.
Ethereum is also gaining ground in real world use cases. Its share of the real world asset tokenization market has grown to more than $12 billion. Big financial institutions are choosing Ethereum to tokenize funds and assets.
Last month, JPMorgan analysts launched the first tokenized fund on the Ethereum network. Other large firms like Janus Henderson and WisdomTree are also building on Ethereum. This shows growing trust from traditional finance.
The DeFi sector is another positive sign. The total value locked across DeFi protocols has climbed above $147 billion. Bridged assets linked to Ethereum have crossed $465 billion. This shows strong demand for Ethereum based financial products.
ETF inflows are also turning positive. Spot Ethereum ETFs have seen more than $358 million in net inflows, reversing losses from earlier months. Interest is picking up again.
This trend could strengthen further after Morgan Stanley filed for a spot Ethereum ETF. The firm manages over $1.8 trillion in assets, and its move adds credibility to ETH as an institutional investment.
The broader economic picture also matters. Interest rate cuts from the Federal Reserve could boost risk assets like crypto. At the same time, the US Senate is expected to move forward with the CLARITY Act, which could bring more regulatory certainty.
From a technical point of view, Ethereum still looks strong. The price has risen from $2,768 in December to around $3,155 now. The chart shows a double bottom pattern, which is usually a bullish sign.
ETH has also moved above a key Fibonacci level and formed an ascending triangle. These patterns suggest buyers are still in control.
If Ethereum breaks above the $3,478 resistance level, it could confirm a stronger rebound. In that case, the next major target for bulls would be around $4,000.
