Ether (ETH) has experienced a significant resurgence, gaining nearly 30% year-to-date following a steep decline earlier this year. According to Citi, the second-largest cryptocurrency is now reclaiming market share from Bitcoin (BTC) as institutional flows ramp up. Demand for spot ether ETFs has surged, with cumulative net inflows surpassing $13 billion, significantly rising from just $2.6 billion in April. Large treasury companies have reportedly increased their ETH holdings to around $10 billion. Additionally, large wallets are accumulating ether, while smaller investors are reducing their exposure, resulting in a decrease in ether balances on centralized exchanges. This trend indicates a potential supply squeeze alongside increasing on-chain activity, contributing to ether's price rally. Analysts caution that the rally isn't solely due to technical factors; rather, itā€™s supported by improving fundamentals and a favorable macroeconomic outlook. Regulatory signals and positive narratives surrounding cryptocurrencies also bolster ether's recovery efforts.

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