TLDR
- ETH ETFs attracted $461 million in a single day, outpacing Bitcoin’s $404 million
- BlackRock led with $250 million, followed by Fidelity ($130M) and Grayscale ($60M)
- ETH trading at $4,190 with open interest reaching near yearly high of $51.61 billion
- Tom Lee called buying Ethereum “the most important trade in next 10 years”
- ETH price needs less than $700 to reclaim its all-time high of $4,891
The second-largest cryptocurrency by market cap is gaining momentum as institutional investors show increased confidence in Ethereum’s future. Recent data indicates that ETH is attracting more capital than Bitcoin, pushing its price closer to record territory.
ETH has stolen the spotlight from Bitcoin as ETF inflows flipped the usual script. A recent single-day haul brought $461 million into ETH products compared to $404 million for BTC, according to Arkham Intelligence.
This surge was driven by major institutional players. BlackRock added $250 million worth of ETH to its holdings, while Fidelity purchased $130 million and Grayscale followed with $60 million.
This represents one of the strongest single-day institutional buying waves ETH has seen this year.
Glassnode data reveals a sharp rise in first-time ETH buyers and momentum traders, pushing new demand higher. At the same time, conviction buyers – those raising their cost basis despite elevated prices – have also grown.
This combination of fresh inflows and seasoned holder commitment could set the stage for an aggressive upward movement if buying pressure continues.
Market Structure Points to Potential Breakout
Ethereum’s derivatives market is heating up. Futures Open Interest sits at $51.61 billion – approaching a yearly high.
Price action has remained strong despite minor pullbacks, with ETH trading at $4,190, comfortably above its 9- and 21-day exponential moving averages.
Technical indicators support the bullish outlook. The Relative Strength Index (RSI) hovers just below overbought territory at 69.8, while the Moving Average Convergence Divergence (MACD) remains firmly positive.
With less than $700 needed to reclaim its all-time high of $4,891, ETH’s current structure suggests it has a real shot at price discovery this year.
Over the weekend, ETH temporarily exceeded $4,300 following unexpected remarks from Fed Vice Chair Michelle Bowman. In a speech to the Kansas Bankers Association, Bowman stated that “three rate cuts are necessary” and emphasized that recent employment data shows proactive measures are needed.
However, not all news has been positive. BlackRock made an unexpected move that injected uncertainty into the market. The major ETF provider withdrew funds from both its Bitcoin spot ETF (IBIT) and Ethereum spot ETF (ETHA).
The Ethereum spot ETF saw a net outflow of $375 million, representing a 3% decrease in BlackRock’s Ethereum holdings in a single day. This massive outflow halted the 21-day consecutive net inflow record for Ethereum spot ETFs.
Macro Factors and Institutional Support
Fortunately, the net outflow of ETF funds stopped after two days. Among the two major cryptocurrencies, Ethereum showed a faster recovery.
Strategic purchases of ETH by U.S.-listed companies acted as a catalyst for Ethereum’s price recovery. Bitmain updated its record as the world’s largest Ethereum-holding listed company, now holding over 830,000 ETH.
Tom Lee, a renowned Wall Street investment guru, emphasized that buying Ethereum will be “the most important trade” he makes in the next 10 years. Geoff Kendrick, head of digital asset research at Standard Chartered Bank, explained that stocks of companies buying Ethereum could be more attractive than Ethereum spot ETFs.
The market is showing sensitivity to economic indicators as concerns grow about potential stagflation in the US economy. The situation where prices rise while employment declines makes it difficult for central banks to determine interest rate policy.
Last week saw President Trump sign new executive orders to prevent debanking for lawful crypto businesses and to open the retirement fund market to crypto.
During this period, Ethereum saw a 25.01% increase in its weekly price, while Bitcoin rose by only 5.44%, despite regaining the $119,000 level over the weekend.
The market’s attention remains focused on whether the Federal Reserve will implement three interest rate cuts this year. The July US Consumer Price Index data to be released on Tuesday is considered crucial for this outlook.
According to FedWatch data, the probability of a 0.25% interest rate cut at the September FOMC meeting stands at 88.4% as of Monday morning.
ETH currently trades at $4,190, showing strong market structure as it aims to challenge its previous all-time high.
The post Ethereum (ETH) Price: Less Than $700 Away From Reclaiming All-Time High appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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