Ethereum News Today: Ethereum ETF Demand Absorbs $4 Billion, On-Chain Volume Surges 288%

Ethereum’s price surge has accelerated in recent weeks, driven by a sharp rise in demand for Ethereum-based exchange-traded funds (ETFs). According to multiple reports, ETFs have absorbed over $4 billion in Ether (ETH) since July 2, with a single record inflow of $533 million recorded on July 22[1]. This influx reflects growing institutional and retail investor confidence in the second-largest cryptocurrency, which has seen its on-chain volume grow by 288% in just three weeks, signaling robust network activity[2]. Analysts suggest that the surge in ETF demand is partly fueled by regulatory clarity in key markets and the appeal of staking yields, which allow investors to earn passive income while holding ETH[3].

The rally has been further bolstered by Ethereum’s technical performance. On-chain data indicates increased transaction volumes and a healthier distribution of holdings, with fewer large wallets concentrating supply. Top crypto analyst Ted Pillows noted that the recent pullback in Ethereum’s price is a “healthy consolidation phase” rather than a sign of weakening momentum, with potential for renewed upward movement once market conditions stabilize[2]. Meanwhile, Ethereum’s price has hovered near $3,500 per token, a level many analysts view as critical for maintaining bullish momentum[4].

The ETF-driven demand has created a self-reinforcing cycle: higher inflows into Ethereum ETFs drive up the price of ETH, which in turn attracts more investors seeking exposure to the asset. This dynamic has drawn comparisons to the broader stock market, where ETFs like small-cap-focused IWM have similarly gained traction as investor sentiment shifts[5]. However, Ethereum’s unique position in the crypto ecosystem—its role as a platform for decentralized applications and smart contracts—distinguishes it from traditional ETF assets, potentially insulating it from some of the volatility seen in equities.

Critically, the surge in ETF demand has not led to proportionate gains in all Ethereum-related metrics. While staking demand remains strong, the price of ETH has yet to break through key resistance levels seen earlier in the year. Some analysts caution that the market remains sensitive to macroeconomic factors, including trade-related uncertainties that have weighed on broader Wall Street indices like the S&P 500[6]. Nonetheless, the ETF-driven liquidity and institutional adoption of Ethereum appear to be reshaping the landscape, reducing liquidity risks and enhancing price discovery.

Source: [1] [Ethereum Rally Gains Steam Amid Soaring ETF Demand] [https://news.bitcoin.com/ethereum-rally-gains-steam-amid-soaring-etf-demand/](https://news.bitcoin.com/ethereum-rally-gains-steam-amid-soaring-etf-demand/)

[2] [Ethereum On-Chain Volume Grows 288% In 3 Weeks] [https://www.mitrade.com/insights/news/live-news/article-3-990030-20250727](https://www.mitrade.com/insights/news/live-news/article-3-990030-20250727)

[3] [Prediction: Bitcoin Will Be Worth $1 Million Someday, and It ...] [https://www.aol.com/prediction-bitcoin-worth-1-million-10450238.html](https://www.aol.com/prediction-bitcoin-worth-1-million-10450238.html)

[4] [ETH to PLN: Ethereum Price in Polish Zloty] [https://www.coingecko.com/en/coins/ethereum/pln](https://www.coingecko.com/en/coins/ethereum/pln)

[5] [Most Active ETFs] [https://nz.finance.yahoo.com/markets/etfs/most-active/](https://nz.finance.yahoo.com/markets/etfs/most-active/)

[6] [Dow, S&P 500, Nasdaq waver as Trump-EU trade deal ...] [https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-waver-as-trump-eu-trade-deal-kicks-off-huge-week-165327703.html](https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-waver-as-trump-eu-trade-deal-kicks-off-huge-week-165327703.html)