The Ethereum (ETH) price has been on a rollercoaster ride in recent weeks, hitting an all-time high and then stabilizing above $4,500. Institutional demand for ETH is growing stronger, as evidenced by positive onchain data and the Fund Market Premium (FMP) turning positive.
The Fund Market Premium (FMP) on CryptoQuant measures the price gap between futures contracts and spot markets. When the premium is positive, it indicates that futures are trading at a premium over the spot market, signaling increased demand from institutional investors. This trend, which last occurred in November 2024 to January 2025, is now repeating itself from July 2025 to the present, leading to a sustained rally in ETH.
Institutional confidence in Ethereum is returning, with buyers willing to pay a premium to secure positions in the cryptocurrency. This renewed interest from institutional investors is a positive sign for the ETH market.
Another factor supporting the bullish outlook for ETH is the increase in active addresses on the Ethereum network throughout Q3, according to on-chain data from Santiment. This rise in user activity reflects broader participation on the network, indicating growing interest and adoption of Ethereum.
The outcome of today’s FOMC meeting is also expected to impact the momentum of the ETH price. The decision on interest rate cuts could influence capital inflows into assets like Bitcoin and Ethereum, potentially pushing the ETH price towards $6,800 in the coming weeks.
Overall, the current market environment for Ethereum is filled with excitement and optimism, with positive onchain data, institutional demand, and potential macro events all pointing towards a bullish trend for the ETH price. Investors are eagerly watching to see how these factors will play out and drive further upside for Ethereum.