The capital flow into Ethereum ETF reaches its peak in 2025 - How does ETH respond?

The rally of Ethereum in May has rekindled investors' interest in ETH ETF funds. In 31 days, the inflow into these investment products exceeded 550 million USD, marking the highest monthly net inflow since the beginning of the year.

Although the price of ETH has experienced a pullback in the past week, technical indicators suggest a short-term recovery.

ETH ETF funds record the highest monthly inflow of 2025

According to data from SosoValue, Ethereum spot ETF funds have recorded a total inflow of 564.18 million USD in May, the highest this year.

Total net inflow into Ethereum spot ETF funds | Source: SosoValueThe capital inflow is mainly driven by the strong performance of ETH, with the leading altcoin surpassing the critical $2,000 level and attempting to consolidate above $2,500 in the month.

The bullish sentiment has encouraged institutional investors to increase their exposure through spot ETF funds, positioning themselves ahead of the continuous rally of this altcoin.

Ethereum is preparing for the next rally

The indicators from the daily chart show that ETH experienced a 49% increase from May 8 to May 13, before stabilizing in the consolidation phase, forming a bullish flag pattern.

Ethereum bullish flag pattern | Source: TradingViewThe bullish flag pattern is formed when the price rises sharply (flagpole) followed by a consolidation phase resembling a small symmetrical triangle (pennant). This pattern indicates that buyers are pausing before continuing the bullish trend.

If ETH breaks out in a bullish direction, it could trigger a new rally, reflecting a 49% increase from the initial level. The breakout will confirm the ongoing bullish momentum and attract more capital inflow.

Moreover, according to data from Coinglass, the funding rate of ETH continues to record values above 0, indicating a preference for Long positions even during the ongoing consolidation phase. As of now, the funding rate of ETH is 0.0046%.

The funding rate of Ethereum | Source: CoinglassA positive funding rate means that Long holders are paying Short holders, indicating a bullish sentiment and many traders are betting on the growth.

Can the bulls trigger a 49% rally?

ETH is currently trading around $2,529, sitting above the lower trendline of the flag pattern, establishing support at $2,479. If a bullish breakout occurs, ETH could rise by approximately 49% to trade around $3,907.

Ethereum Price Analysis | Source: TradingViewHowever, if the sell-off continues, the price of this altcoin could fall below the flag and revert to $2,419.

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