Ethereum Price Rises 2.5% to $2,610 Amid Strong Institutional Demand

Ethereum has maintained its position as the most favored altcoin among funds, with only Bitcoin surpassing its volumes. The cryptocurrency's price has seen a 2.5% increase, reaching $2,610, despite an overall decline in the cryptocurrency market due to ongoing tariff uncertainties. Over the past week, Ethereum has risen by 6.5%, and by 7% over the past fortnight. However, it remains one of the few major tokens experiencing a decline over the last 12 months, with a 15% drop.

Recent data indicates that spot-based ETH ETFs have experienced positive net inflows for the past eight weeks, signaling rising demand for the token. This, combined with its strong fundamentals, suggests a positive long-term Ethereum price prediction. According to glassnode, ETF inflows topped 61,000 ETH (approximately $159 million) this week. Since mid-April, Ethereum ETFs have enjoyed ten weeks of inflows, with only one week of outflows in early May.

CoinShares Digital Asset Fund Flows reports show that Ethereum has consistently outperformed other altcoins. In the seven days leading up to July 7, ETH funds attracted $226.4 million in inflows, significantly outpacing its nearest rival, Solana, by a factor of ten. The difference was even more pronounced in the week leading up to June 30, with Ethereum funds having inflows of $429 million compared to $5.3 million for SOL. This indicates that, after Bitcoin, Ethereum is a favorite among institutions and large traders, which is understandable given Ethereum’s status as a leading layer-one platform.

Ethereum continues to dominate in terms of total value locked (TVL), with its $66.3 billion accounting for 56.5% of the entire sector. This suggests that ETH remains in a very oversold position, with its chart showing signs that a significant upward climb may be imminent. Its price appears poised to break out of the pennant formation that has been developing since the highs of December, while its indicators also show increasing momentum. The Relative Strength Index (RSI) has risen from 30 a couple of weeks ago to almost 60 today, with its trajectory suggesting further increases. Meanwhile, the moving average convergence divergence (MACD) is about to turn positive, having spent most of this year in a negative position.

Assuming that global trade picks up later in the summer, the Ethereum price could return to its former highs. It may reach $3,000 by the end of August, before hitting $4,000 by the fourth quarter. This optimistic outlook is based on the continued buying by institutions and the positive technical indicators, which suggest that Ethereum's fortunes may be turning for the better.