Ethereum tops $2,300 for the first time in six weeks, signaling capital rotation into altcoins

Ethereum (ETH) is leading the upswing in the crypto market, breaking above $2,300 for the first time in six weeks.

According to CoinDesk on the 17th (local time), Ethereum has climbed more than 10% over the past 24 hours to surpass $2,300. That is a notably stronger move compared with Bitcoin (BTC), which rose about 3% over the same period.

The rebound is seen as coinciding with a recovery in institutional inflows. US spot Ethereum exchange-traded funds (ETFs) logged net inflows of more than $160 million last week, marking the largest weekly intake since January. BlackRock’s staking-based ETF (ETHB) also drew tens of millions of dollars in its early days of trading, validating demand.

Corporate demand is also expanding. BitMine, which has adopted an Ethereum treasury strategy, has added about 122,000 ETH over the past two weeks, underpinning market demand. Shares of related companies also moved higher in tandem.

The market is watching whether the rally could be a signal of “rotation,” with flows that had been concentrated in Bitcoin spreading into altcoins. LMAX Group said, “Ethereum’s relative strength suggests the potential for capital shifts based on network growth and valuation appeal.”

Still, the potential for volatility tied to macro factors remains. Some also point out that altcoin gains could swing more sharply depending on policy signals related to interest rates and inflation.