Ethereum News Today: Ethereum Surges 43% as ETF Inflows Hit $727 Million

Ethereum's price surge past the $3,600 mark has shown remarkable resilience, with bullish momentum expected to persist as long as key macroeconomic conditions remain favorable. The rally is primarily driven by substantial inflows into Ethereum-based exchange-traded funds (ETFs) and the ongoing ambiguity surrounding the Federal Reserve's monetary policy, exacerbated by rumors about the future of Federal Reserve Chairman Jerome Powell.

Felix Xu, a partner at a leading crypto hedge fund, highlighted that Wednesday’s $727 million in spot Ether ETF inflows — the largest since ETF trading for Ether began in July 2024 — was a critical driver for ETH’s current price strength. These inflows effectively reduce liquid supply and add to upward price pressure, as the coins go straight into cold custody and are not available for immediate resale. At the time of Xu’s comments, Ether was trading at $3,609, up more than 43% over the past month.

Beyond ETFs, the broader macroeconomic environment is favorable for Ethereum and other risk assets. While June’s Consumer Price Index (CPI) came in slightly higher, political pressure on the Fed from President Donald Trump as a bullish factor. Trump keeps urging the Fed to slash rates by up to three percentage points, a reminder that policy risk still tilts dovish for risk assets. Unless ETF inflows abruptly stop and the Fed simultaneously turns aggressively hawkish, a repeat of last October’s 30% correction appears unlikely.

Despite growing optimism, Xu is cautious about the increasingly popular $10,000 price target for Ether. A $10K target implies a 190% move in a little over five months — something ETH has achieved only twice, during the 2017 ICO frenzy and the 2020–21 DeFi boom. That kind of move is a stretch. Still, he acknowledged that if staking is added to the ETF structure, investor sentiment improves, and Ethereum adoption accelerates, the goal becomes more realistic. Accelerating real-world use of the Ethereum stack — restaking, booming layer-2 rollups, and fresh application verticals — could tighten ETH supply and fuel further gains.

Trevor Koverko, co-founder of Sapien, echoed similar views. It’s an ambitious move, but not impossible to assume that ETH could even approach a $10k valuation if we continue to see strong macro tailwinds, broader ETF adoption, and the continued narrative shift toward Ethereum being the backbone of the next financial system. ETH feels a lot less like a speculative bet now versus a programmable digital asset. Analyst Mikybull Crypto has predicted Ether could rise to between $7,000 and $10,000 based on technical indicators such as the Relative Strength Index (RSI).