The Grayscale Ethereum Trust (ETHE) reported zero million US dollars in daily flows on May 7, 2025, according to data from Farside Investors. This complete stagnation in institutional activity comes amid broader market uncertainty, as traditional stock indices showed weakness with the S&P 500 declining 0.3% to 5,180 points and the Nasdaq Composite dropping 0.4% to 16,320 points on May 6. The correlation between these markets remains significant, with Ethereum’s price reflecting this cautious sentiment by dipping 1.2% to approximately $3,050 over the 24-hour period ending May 7 at 10:00 AM UTC, while trading volume across major exchanges decreased by 8% to $12.5 billion.
Technical indicators paint a neutral picture for Ethereum, with the Relative Strength Index (RSI) standing at 48 as of May 7, suggesting neither overbought nor oversold conditions. The cryptocurrency faces resistance at its 50-day moving average of $3,100, with support established around $2,950 based on recent price action. On-chain metrics reinforce the consolidation narrative, as Ethereum’s daily active addresses decreased by 5% to 410,000 as of May 6, indicating reduced user engagement that could pressure prices if the trend continues. The stagnant ETF flows suggest institutional investors may be waiting for clearer macroeconomic signals before making significant moves, particularly with upcoming U.S. economic data releases like the Consumer Price Index report expected later in May.
The lack of movement in ETHE flows points to a potential range-bound scenario for ETH/USD in the short term, with traders advised to monitor for volume spikes as indicators of directional shifts. This pause in institutional activity extends to crypto-related stocks, with oinbase">Coinbase Global (COIN) dropping 2.1% to $205.30 and MicroStrategy (MSTR) declining 1.8% to $1,220 on May 6, reflecting synchronized caution across digital asset markets. For traders seeking opportunities, the ETH/BTC pair could offer insights as a relative strength indicator, with a potential breakout above the 0.049 BTC resistance signaling renewed interest in Ethereum over itcoin">Bitcoin, which has shown more stable price action at $62,400 with just a 0.5% decline during the same period.
