Ethereum News Today: Ethereum Surges 47% in a Month, Reaching $3,609 on Institutional Inflows

Ethereum (ETH) has experienced a significant surge in value over the past month, with a 47% increase that has outpaced both Bitcoin and most of the broader cryptocurrency market. This rally has pushed ETH to its highest price level in over two years, reaching $3,609. The surge has garnered attention from both crypto investors and traditional financial institutions, who are increasingly viewing Ethereum as more than just a utility token—it is evolving into a reserve asset for the digital economy.

One of the key drivers behind Ethereum's recent growth is the substantial institutional inflows into Ether ETFs. On July 17, these ETFs saw a record $727 million in inflows, the largest single-day figure since their launch in mid-2024. This influx of capital effectively reduces the circulating supply of ETH, as coins are locked in cold storage, which typically increases scarcity and drives up prices. The level of institutional interest in Ethereum mirrors the Bitcoin ETF frenzy that contributed to BTC's current all-time high, indicating that Ethereum is now being treated as a legitimate financial asset rather than just a tech investment.

Macroeconomic factors are also playing a role in Ethereum's rally. Despite a slight increase in inflation in June, political pressure is pushing the Federal Reserve toward a more dovish stance. This dovishness, combined with the record ETF inflows, suggests that a full retrace on ETH is unlikely unless there is a sudden shift in market sentiment or aggressive hawkishness from the Federal Reserve. If the current market view remains encouraging, cryptocurrencies like ETH are likely to continue performing well.

However, the idea of Ethereum hitting $10,000 by the end of the year remains a topic of debate. Such a rise would require a 190% increase in just five months, a feat that ETH has only achieved twice before—during the 2017 ICO bubble and the 2020–21 DeFi boom. While this level of growth is challenging, it is not impossible. Multiple drivers, including continued ETF inflows, the addition of staking to ETFs, and stronger institutional adoption, would need to align for such a significant increase to occur.

Unlike previous bull runs driven by hype around NFTs or meme coins, Ethereum’s current growth is closely tied to its role in traditional finance. According to a new report, Ethereum now supports over 54% of all stablecoins, which have become important tools for cross-border finance, especially in inflation-prone markets. Ethereum’s ability to meet the demands of the traditional financial space gives it a major edge over competitors. As stablecoins grow, Ethereum’s dominance in this space is likely to strengthen its case as a reserve asset over the years. With major hedge funds now piling into the Ethereum market, it is clear that the asset is becoming a more significant competitor to Bitcoin.