The value of the popular cryptocurrency Ethereum has increased by 5% in the last week, benefiting from a general market recovery trend. This rise in price has sparked renewed interest in Ethereum, especially among retail traders in the United States, according to data from blockchain transactions.

On the other hand, institutional investors seem to be hesitant. They are withdrawing their investments from funds based on Ethereum, signaling their lack of confidence in a potential price increase in the near future.

The growing retail interest in Ethereum is evident through the Coinbase Premium, which has risen above zero, suggesting increased buying activity by U.S. investors. The Ethereum Coinbase Premium Index, measuring the price difference between Coinbase and Binance, indicates significant purchasing by U.S. investors when it surpasses zero.

Conversely, a drop in the index into negative territory reflects reduced trading on the U.S. exchange. The surge in the premium reflects optimism in the market, driving up Ethereum's value in the short term due to rising investor interest.

Nevertheless, institutional investors in the U.S. continue to show caution by pulling out capital from Ethereum-based exchange-traded funds (ETFs) for seven consecutive days, contrasting the optimism of retail traders. This discrepancy suggests that while U.S. retail investors are optimistic about Ethereum's immediate outlook, institutional investors are more reserved, possibly due to economic uncertainties.

Ethereum is currently experiencing strong capital inflows, as indicated by the positive Balance of Power (BoP) value, reflecting the current market recovery trend. The BoP, which measures buying and selling pressures, is on the rise at 0.57, signaling accumulation. If this trend continues, Ethereum's price could reach $2,114.

However, if market sentiment shifts to bearish and demand from retail traders decreases, Ethereum could lose its recent gains and drop to $1,395.