The largest altcoin, Ethereum (ETH) 
$3,106, ended June with a 2% decline, dropping below $2,800 on June 30. The decrease was primarily driven by global tariff tensions and the U.S. Federal Reserve’s uncertain stance on interest rates, fostering a cautious market atmosphere. Yet, Ethereum holds four significant signals that could boost its price in the upcoming months. Experts suggest that these signals point to substantial recovery potential in the third quarter of the year.
Layer-2 Fees Race to Influence Ethereum’s Journey
As confirmed by L2’s data, the Dencun update, which was implemented on March 13, 2024, dramatically reduced the cost of writing bulk transaction data to the main Blockchain for Layer-2 applications. Consequently, Ethereum’s base Blockchain revenue plummeted from $30 million annually to $500,000 in the first quarter.
The decrease in staking yield also drove some investors away from the altcoin giant. However, funds shifted towards Ethereum-based scaling coins like Optimism, Arbitrum, and Mantle, rather than moving to competing networks.
Though this scenario may seem like a weakness at first glance, it actually highlights that the overall economic activity within the ecosystem still fuels the Ethereum infrastructure. Analysts believe that upon the resolution of the Layer-2 fees race, usage intensity will converge around a single standard, enhancing Ethereum Blockchain’s capability to capture value once again. Experts emphasize that the market has not fully priced in this long-term signal yet.
Institutional Acquisitions Bolster Ethereum’s Price
On the institutional front, SharpLink Gaming’s late-May acquisition of Ethereum worth $30 million stood out. Wall Street likened the company’s treasury strategy to that of Bitcoin 
$90,533 pioneer Strategy, boosting the stock nearly 20-fold in just eight days. Additionally, a whale acquisition recorded at $39 million on June 22 also indicated confidence, decreasing the Ethereum supply on exchanges.
Lastly, New York-based Bit Digital announced on June 25 its intention to sell $34 million worth of Bitcoin in favor of Ethereum. The management aims to stake the acquired coins to gain early access to Layer-2 yields. These successive major demands reflect investors’ desire to seize Ethereum’s potential in July and beyond.
