ETH Outlook Brightens: Hedge Funds Shift to Favor Ethereum

Ethereum regains strength with a 56% surge, driven by stablecoins and tokenization growth. Institutional focus shifts to Ethereum’s Layer 2 and RWA adoption for digital finance. Hedge funds unwind ETH shorts as blockchain utility regains investor confidence. Ethereum (ETH) has recovered 56% over the past month, reaching $2,565.95 at the time of writing on May 15, 2025. This renewed growth for Ethereum, following months where it lagged Bitcoin and newer Layer 1 competitors, points to shifts in institutional strategy, emerging blockchain technology use cases, and a broader market move away from single-asset dominance. The ETH recovery started around April 24, when ETH traded below $1,700, and accelerated between May 8 and May 13, briefly passing $2,700 before stabilizing. Source: CoinMarketCap Structural Developments Drive Ethereum’s Resurgence While general crypto market sentiment improved, Ethereum’s rise also stems from key structural developments, as highlighted in a client note from research firm Bernstein. These factors include increased activity in stablecoin payments, the expansion of Layer 2 networks, and a notable change in hedge fund tr… The post ETH Outlook Brightens: Hedge Funds Shift to Favor Ethereum appeared first on Coin Edition .

Source: Coin Edition