Ethereum News Today: Ethereum Surges 56% in July Driven by $5.37 Billion ETF Inflows

Ethereum closed July as one of the most impressive performers in the digital asset space, rising 56% to reach $3,862 by month-end, according to CoinGecko [1]. This marked its best monthly performance in three years and was driven in large part by robust inflows into spot Ether ETFs, which saw $5.37 billion in net inflows over 19 consecutive days in July [1]. BlackRock’s iShares Ethereum ETF, in particular, reached $10 billion in assets under management in just 251 days, becoming one of the fastest-growing ETFs in history [1].

The momentum has drawn comparisons from Bloomberg’s senior ETF analyst Eric Balchunas, who likened Ether’s rise to the explosive growth of 1990s tech stocks. Unlike Bitcoin, which is often viewed as a store of value, Ethereum’s role as a programmable platform for DeFi and other decentralized applications has positioned it more as a growth asset, attracting institutional investors and reshaping market sentiment [1].

In addition to ETF activity, Ether’s perpetual futures volume dominance has surpassed Bitcoin for the first time in three years, reflecting heightened trading interest in Ethereum [1]. A key level to watch is $4,000, above which nearly $930 million in short positions could be liquidated, potentially fueling a surge toward $4,500. However, technical indicators suggest caution. Ethereum’s relative strength index (RSI) is showing bearish divergence, indicating weakening buying pressure despite rising prices. Chart analysts have identified potential correction patterns on four-hour and daily charts, with resistance at $4,000 and support at $3,700 becoming key focal points [1].

On-chain data and market analysis highlight a complex investment environment. While Ethereum’s strong performance has been supported by favorable macroeconomic conditions, regulatory progress, and growing adoption of DeFi and NFTs, traders are now closely monitoring for signs of overextension. A failure to break above $4,500 could lead to a pullback toward $3,200–$3,300, a level that has not been tested in the current rally [2]. Analysts suggest that the coming weeks will be crucial in determining whether the bullish trend continues or gives way to a near-term correction [2].

Sources:

[1] Ethereum Ends July As One Of The Best Performing Assets: Charts Flash Warning Signs For $4.5k (https://www.livebitcoinnews.com/ethereum-ends-july-as-one-of-the-best-performing-assets-charts-flash-warning-signs-for-4-5k/)

[2] title2 (https://news.google.com/home?ceid=ID%3Aen&gl=ID&hl=en-ID)