Ethereum Price Nears $2,000 as Wall Street ETF Inflows Rise

Key Insights

• Ethereum price has jumped and is nearing the important resistance of $2,000.
• Spot Ethereum ETF inflows have continued rising this month.
• BitMine continued buying more tokens and is nearing its 5% target.

Ethereum price has recovered from its June low near $1,509 and moved toward the psychological $2,000 resistance area. The rebound has coincided with renewed spot ETF inflows, higher futures participation and continued corporate accumulation, although those indicators do not guarantee further gains.

ETH price has jumped recently, and there are signs that investors are accumulating it. SoSoValue data shows that spot ETH ETFs had over $38 million in inflows on Monday after adding $36 million on Friday.

The latest additions brought monthly net inflows to approximately $271 million, marking a reversal after two consecutive months of net outflows, according to SoSoValue. BlackRock’s ETHA ETF led the gains, adding over $34.3 million in assets. Fidelity’s FETH added $2.83 million.

The same is happening among Bitcoin ETFs, which have added substantial inflows in the past few days. They added over $226 million in inflows on Monday, bringing this month’s inflows to $427 million.

The inflows occurred while semiconductor and memory stocks faced renewed selling pressure. However, the available ETF data does not establish that investors moved capital directly from technology shares into cryptocurrency products.

As a result, there is a possibility that investors are starting to rotate back to beaten-down sectors that lagged the market during the AI boom. The same is happening among other assets like value stocks.

BitMine reported holding about 5.74 million ETH, or roughly 4.8% of Ethereum’s estimated supply. The company remains close to its stated 5% target, although it has not provided a firm completion date and has discussed slowing the pace of purchases.

More data shows that the funding rate has remained in the green since June 28, a sign that investors expect the price will be higher over time. Similarly, the futures open interest has jumped to $26 billion from last month’s low of $22 billion. That is a sign that investors are becoming more active in ETH trading.

Meanwhile, more investors are staking their coins. Data shows that the staking ratio has jumped to 33.89%, with the staking market capitalization hitting $80 billion. Staking inflows has been in an upward trend in all but two days in the last 30 days. They have jumped by over $1.69 billion in this period.

These metrics explain why the amount of ETH in exchanges has continued falling. Data shows that the supply has dropped to 12.2 million, much lower than last December’s high of 17.75 million.

A falling supply in exchanges at a time when demand is rising may lead to higher prices in the near term.

All this is happening at a time when the Crypto Fear and Greed Index has continued rising. It has moved from the extreme fear zone of 17 to the neutral level of 35.

The daily chart shows that the ETH price has done well in the past few days, moving from a low of $1,509 in June to the current $1,940. It has already jumped above the 50-day Exponential Moving Average (EMA), a sign that bulls are prevailing.

Meanwhile, most oscillators have continued rising. The Relative Strength Index (RSI) has moved above the neutral level of 50. The MACD has continued rising, a sign that the momentum is continuing.

This article is for informational purposes only and does not constitute financial or investment advice. ETF flows, corporate purchases, staking data and technical indicators do not guarantee future price performance. Cryptocurrency markets remain highly volatile, and readers should conduct their own research before making investment decisions.

Therefore, the coin will continue rising as bulls target the next key resistance level of $2,400. This view will be confirmed if it moves above the psychological level of $2,000.

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