After reaching a new all-time high in May, Bitcoin, the leading altcoin, Ethereum, saw an increase in trading activity and briefly hit $2,789 on May 29. However, as the market has cooled down recently, the price of ETH has stabilized within a narrow range. Despite this, analysts are optimistic about Ethereum's prospects for June.

In a recent interview with BeInCrypto, Temujin Louie, CEO of Wanchain, mentioned that ETH's outlook for the month is positive due to growing inflows in Ethereum exchange-traded funds (ETFs) and improved network stability. He highlighted that ongoing investment in Ethereum ETFs indicates strong institutional interest, which boosts the credibility of ETH as a long-term asset. Louie also pointed out the success of Ethereum's recent Pectra upgrade and the settling of internal disputes within the Ethereum Foundation, which have bolstered investor confidence in both the network and the asset.

Dominick John, an analyst at Kronos Research, supported this optimism by noting the impact of increasing ETF inflows on ETH's price movement. He emphasized the surge in institutional interest through ETFs, which has led to enhanced market liquidity and reduced volatility. The rise in weekly inflows into ETH-backed ETFs since mid-May, reaching $286 million this week, reflects growing confidence among institutional investors.

The positive trend in ETH's funding rate also aligns with the bullish outlook for Ethereum. The current funding rate of 0.0068% indicates ongoing confidence from leveraged traders supporting long positions, potentially driving the price of ETH higher.

Despite this positive sentiment, analysts warn that broader macroeconomic conditions could pose risks to ETH's short-term performance. Louie and John both highlighted the impact of macro trends, such as inflation data and Federal Reserve policy shifts, on ETH's price action. They advised monitoring signals closely to gauge the trajectory of ETH's price in the coming weeks.