Ethereum Surges 1.57% as Institutions Invest $102.92 Million

Ethereum's latest price was $3539.83, up 1.575% in the last 24 hours. This price increase is part of a broader trend of institutional interest in the cryptocurrency. Bit Digital, a significant player in the crypto market, has made a strategic move by investing $67.3 million in Ethereum, acquiring approximately 19,683 coins. This purchase has increased Bit Digital's total Ethereum holdings to around 120,306 coins, marking a substantial expansion of its cryptocurrency portfolio. The strategic investment is driven by institutional investors, who are increasingly recognizing the potential of Ethereum in the broader crypto landscape. This move is expected to positively influence Bit Digital's financial standing and could signal a new era of strategic acquisitions in the institutional crypto investment space.

SharpLink Gaming has also added 10,614 ETH to its reserves, worth about $35.62 million. This action increases the total ETH that SharpLink possesses to an enormous 296,508 ETH, which accounts for an estimate of approximately $997.26 million. This strategic build by the company is a result of increasing institutional confidence in the future of Ethereum. Additionally, this positions SharpLink ahead of a potential ETH bull run, signaling that smart money is entering early and aggressively.

Ethereum has seen a bullish breakout, confirming a massive inverse head and shoulders pattern. This technical shift has fueled investor optimism for a significant rally toward $6K and beyond, although a short-term dip toward $2,800 remains possible. The breakout occurred just above the $2,867.30 neckline, which is now acting as strong support. High volume and price expansion validate this bullish setup. Historical patterns suggest that ETH could mirror its previous +107% surge from similar formations, with the current green projection box showing a potential target of $6,000, a 109% upside from the breakout level. However, a healthy retest to the $2,800 zone remains a probable scenario, which is now a critical support to monitor in the near term.

Ethereum's second quarter saw significant improvements, including increased inflows of exchange-traded funds (ETFs), layer-2 activity, and liquidity, which enhance the prospects for the third quarter. US-traded spot Ethereum ETFs captured $1.7 billion in net inflows last quarter, overturning the prior period’s outflows. Layer-2 throughput climbed 7%, while average user fees dropped 39%. This was followed by an 8% increase in liquid supply, while long-dormant balances shrank 6%. As a result of the improvements seen last quarter, the share of ETH held at a profit increased from under 40% to nearly 90%. Additionally, the total value locked on Ethereum reached $63.2 billion. The improvements are also registered in the derivatives market, where daily perpetual futures turnover averaged $51.4 billion, up 56% quarter-over-quarter. Aggregate inflows erased a first-quarter $200 million leak and restored momentum for managers positioning ETH as the market’s second large-cap crypto. Futures open interest totaled $14.5 billion on June 30 despite a 6.9% quarterly pullback, highlighting deeper liquidity across regulated venues. Meanwhile, options open interest stood at $5.3 billion, with derivatives desks also logging an 11% uptick in term-futures volume, signaling growing hedging appetite.

Developers and users benefited from a 39% decline in base layer fees as rollups absorbed more transactions, sharpening the economics of on-chain application deployment. At the same time, Ethereum’s inflation rate remained modest, at approximately 0.75% annualized. This cushioned long-term supply pressure. Staked ETH continued to climb, and the report plotted both total staked value and the associated annual yield among its core fundamentals tables. On-chain analytics show that holders used the second-quarter price recovery to reposition. Liquid coins, defined as those moved within 90 days, rose 8%, whereas coins untouched for more than a year fell 6%. This indicated controlled profit-taking rather than wholesale distribution. ETH’s Net Unrealized Profit/Loss flipped from capitulation to optimism between the first and second quarters, aligning with market-cycle models that track investor sentiment shifts. The pool of coins sitting below cost plummeted from more than 40 million to fewer than 10 million over the same period.

Ethereum’s $63 billion total value locked (TVL) in the DeFi ecosystem is spread across lending, decentralized exchanges, and yield farming protocols. Ether also expanded its slice of total crypto market capitalization alongside Bitcoin and Solana as investors rotated toward perceived blue-chip assets. Perpetual swap funding rates, tracked alongside Bitcoin and Solana, remained neutral to positive through late June, suggesting balanced speculative positioning rather than froth. However, the report cautioned that sustained ETF inflows and favorable fee conditions must persist to maintain the second-quarter constructive backdrop. Nevertheless, it noted that Ethereum now enters the third quarter with stronger institutional sponsorship, lower transaction costs, and a healthier on-chain profit profile.

The Fusaka upgrade has been a hot topic among Ethereum developers, and recent discussions have led to a notable adjustment. The initial plans included a specific proposal known as EIP-7907, which aimed to introduce contract code size limits. However, in a move reflecting the iterative nature of blockchain development, developers have decided to remove EIP-7907 from the Fusaka upgrade for now. This means that for the time being, the current contract code size limits will remain unchanged. The decision to pull EIP-7907 from Fusaka isn’t a rejection of the idea itself, but rather a strategic deferral. Developers often prioritize stability and thorough testing, and sometimes a proposal requires more refinement or a different context to be safely implemented. This cautious approach ensures that the network remains stable and secure as it continues to evolve.

Ethereum-related developments gained attention this week following significant regulatory progress. The GENIUS Act, landmark legislation establishing a federal framework for stablecoin issuance and oversight, was signed into law. This legislative milestone is viewed as a crucial step towards providing regulatory clarity for the broader digital asset ecosystem, including Ethereum.

Corporate adoption of Ethereum demonstrated further momentum through notable treasury acquisitions. Bit Digital significantly expanded its holdings, acquiring nearly 20,000 ETH. This strategic accumulation, facilitated through a $67.3 million direct offering to institutional investors, elevates the company's total Ethereum reserves beyond 120,000 tokens, signaling heightened institutional confidence in the asset.

On the investment products front, Ethereum exchange-traded funds (ETFs) registered a substantial surge in capital inflows. Reports highlighted one of their strongest performance weeks since their introduction to the market, commencing with significant single-day inflows. This robust activity underscores sustained institutional and investor demand gaining access to Ethereum exposure through regulated, traditional finance vehicles.

Positive sentiment continues to build within market analyst circles. The combination of favorable regulatory developments, increased adoption by institutions and corporations, and strong ETF inflows contributes to an optimistic outlook regarding Ethereum's fundamental position and future potential within the blockchain landscape. Analysts suggest that the current trajectory points towards ongoing development and ecosystem maturation.