Key Insights
- Ethereum surged 56% in July to a monthly high of $3,862 after experiencing over $5.3 billion in ETF inflows.
- BlackRock’s iShares Ethereum ETF reached $10 billion in assets, ultimately showing institutional interest.
- Network activity has been modest, showing a gap between price growth and blockchain use.
Ethereum (ETH) made headlines this July by posting an impressive 56% surge in price. The cryptocurrency climbed from $2,468 to $3,862, buoyed mainly by a massive wave of inflows into Ethereum ETFs.
BlackRock’s iShares Ethereum ETF was among the major contributors. The total monthly flow is Ethereum’s strongest monthly performance in three years.
Ethereum ETF Inflows Reach Record Levels
Ethereum ETF inflows were the star of July. According to CoinGecko and TradingView data, Ethereum ETFs saw a 19-day streak of net inflows worth over $5.37 billion. This streak is now tied for the longest in ETF history.
BlackRock’s iShares Ethereum ETF was one of the biggest players in this feat. Within 251 days, this ETF became the third-fastest Ethereum-based product to reach $10 billion in assets.
This pace puts Ethereum ETPs in the same league as some of the most successful ETFs within the Trad-fi space. Moreover, from July 24 to July 30, Ether ETFs beat Bitcoin ETFs in daily net inflows. This trend shows Ethereum’s appeal to institutions.
This indicates that there might be an incoming change in dominance. That could be seen as investors rowing away from Bitcoin and moving towards altcoins.
Institutional Activity and Whale Moves Show Confidence
It wasn’t just the ETFs that made some buzz. Major players like FTX and Alameda Research also staked over 20,000 ETH in late July, worth nearly $79 million.
This move further shows the rise in confidence in Ethereum’s staking yield. This offers passive returns to long-term holders.
On the same note, a crypto whale bought 39,651 ETH from Galaxy Digital at an average price of $3,840. This kind of accumulation right before the month-end is generally regarded as bullish.
Institutions and whales are positioning for further gains in the crypto market. The possible launch of ETF products with staking could drive even more growth.
ETH Network Activity Lags Behind Price
Ethereum’s network usage hasn’t kept pace despite the strong price rally and inflows. Over the past six months, activity has risen by only 5%, and transaction fee revenue increased by just 3%.
As of this writing, Ethereum generates about $764 million in network revenue annually.
By comparison, this same annual network earned a staggering $1.5 billion monthly during our market peak. This is a severe mismatch between price and network usage, which is spooking many analysts.
Technical Levels for Ethereum
ETH is now facing resistance at $4,000 in the charts. The cryptocurrency hasn’t traded above this level since the last bull run.
Also, a breakout could be massive. According to many analysts, it could validate the current bullish trend and open the path to $4,200 or even $5,140.
Technical indicators also show that Ethereum is coiling up for such a move. For example, Futures’ open interest hit $7.85 billion in late July, showing strong participation and high liquidity.
However, the market is still showing signs of caution. ETH is struggling to hold above its already-claimed supports.
For now, the support that everyone is currently watching lies around $3,300. In other words, holding this level is important for Ethereum’s bullishness over the near term.
Etialereum ETF Surge: From Speculative Bet to Portfolio Staple
Ethereum’s performance in July shows just how the tides can turn in a matter of weeks. The ongoing Ethereum ETF surge is real, attracting capital from all directions.
While on-chain metrics haven’t caught up yet, investor interest indicates that Ethereum is no longer just another asset to bet on. It is now becoming a part of major portfolios.