Within just 24 hours, Ethereum (ETH) surged by over 7.6%, reaching a price of $3,614 and hitting a new monthly high. The driving forces behind this rally include massive ETF fund inflows, technical breakthrough of key resistance levels, and large-scale purchases by institutions. Market sentiment has shifted from pessimistic to optimistic, with investors closely watching whether ETH can sustain this strong rebound.
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ToggleInstitutions Frantically Buying: ETH Funds Flowing into ETF and Corporate Treasuries
The US spot ETH ETF absorbed over $192 million in a single day on July 15, with BlackRock's ETHA ETF contributing as much as $171 million in inflows, indicating that large asset management companies are actively deploying Ethereum.
Beyond ETF performance, companies are also joining the buying spree. Online gaming company SharpLink Gaming purchased 91,330 ETH (approximately $275 million) in the past seven days, while notable crypto wallet addresses "0x9684" and "0x35fb" separately bought over $400 million worth of ETH across multiple exchanges.
Additionally, after completing a $250 million private placement, BitMine Immersion Technologies publicly holds over $1 billion in ETH, demonstrating that ETH is gradually becoming part of corporate asset allocation.
Technical Breakthrough: Key Price Levels Conquered, Bullish Momentum Soaring
Technical analysis also supports this rally. ETH successfully broke through the short-term high of $3,521.69 and, based on Fibonacci extension targets, is poised to challenge $3,903.85 (127.2% extension zone).
Despite strong momentum, technical indicators caution investors to remain vigilant. The RSI-7 reached 93.74, indicating an extremely overbought market condition typically preceding short-term corrections. Moreover, the MACD histogram at +80.26 reflects strong bullish momentum, but potential profit-taking risks may emerge near the technical resistance zone around $3,980.
Policy Support: NASDAQ and SEC Actions Boost ETH Confidence
Beyond funding and technical aspects, regulatory news has also provided momentum. NASDAQ recently submitted a proposal to the SEC to allow ETH ETF staking, potentially creating additional revenue streams for ETF investors and attracting more long-term holders.
Simultaneously, the SEC's recent regulatory stance towards the crypto industry has shown signs of shifting, releasing more exemption and classification clarification signals, providing greater assurance for ETH's asset positioning and legitimacy.
ETH's dominance relative to Bitcoin (ETH/BTC) has also risen to 0.0283, reaching a new high since March 2025, further indicating that funds are beginning to shift from Bitcoin towards more growth-potential altcoins.
Three Major Driving Forces Synergizing, Can ETH Maintain Short-Term Momentum?
Overall, ETH's breakthrough is driven by three major forces: institutional fund inflows, technical chart breakthroughs, and favorable policy news. However, the overheated short-term technical indicators also warn of potential temporary consolidation or pullback.
Investors should pay attention to whether Bitcoin's renewed challenge of the $120,000 mark might draw away market funds and impact ETH's ETF-driven rally - this will be a crucial indicator for future market trends.
Risk Warning
Cryptocurrency investments carry high risks, with potentially significant price volatility. You may lose your entire principal. Please carefully assess the risks.
