Ethereum (ETH) has been on a bullish run recently, with the price rallying towards the $4,000 mark at the beginning of the week. This surge has brought the cryptocurrency to levels not seen since December 2024, currently trading at around $3,800. The significant 30% gain over the past week, starting from $2,900, has sparked investor interest in Ethereum due to its growing institutional presence and improving regulatory environment.
A major catalyst behind the recent surge in the price of ETH has been the substantial influx of funds into U.S.-based spot Ethereum ETFs. These institutional products experienced record-breaking activity in mid-July, with net inflows reaching a historic $727 million on July 16th alone. BlackRock’s ETHA fund accounted for the majority of this inflow, attracting $499.2 million in a single day. This influx of capital signifies the growing interest of asset managers and large institutions in Ethereum as a long-term investment vehicle.
The trend of increasing ETH ETF inflows mirrors the trajectory that Bitcoin ETFs followed, transforming BTC into a widely held institutional asset. Now, Ethereum seems to be following a similar path, laying the groundwork for more stable and prolonged upside movements in its valuation.
In addition to ETF inflows, recent legislative developments have also contributed to the positive sentiment surrounding Ethereum. The U.S. House of Representatives passed three major crypto bills last week, including the GENIUS Act, aimed at establishing a clear federal framework for stablecoins and enhancing regulatory clarity in the sector. These legislative tailwinds are expected to boost decentralized finance (DeFi) and stablecoin infrastructure, leading to increased institutional participation and user growth.
From a technical standpoint, Ethereum’s monthly chart shows signs of breaking out of a multi-year symmetrical triangle pattern. Analysts like Merlijn The Trader have pointed out the strong technical indicators, such as a triple RSI bounce and compression signals within a macro channel, suggesting a potential move towards $5,000 and even $17,000 in the future.
Despite the bullish setup, some market watchers anticipate a near-term pullback in the price of ETH. With a 79% gain in just 30 days, similar to a previous rally in early 2024, a correction back to the $2,900 range could be on the horizon. Analysts advise caution but see this potential retracement as a buying opportunity for patient investors.
Overall, Ethereum remains in focus for investors as institutional interest, legislative clarity, and technical indicators continue to support a structurally bullish outlook for the cryptocurrency.