Ethereum isn’t grabbing headlines with dramatic price moves – but maybe that’s the point. Beneath the surface, something
far more telling is unfolding. Institutional money is quietly pouring into Ethereum ETFs, with inflows crossing $10 billion and climbing fast. It’s the kind of deliberate accumulation that doesn’t move markets overnight – but often lays the groundwork for
the next major rally.
So while the crypto spotlight has flickered elsewhere, Ethereum might be setting up its most important move yet.
The ETF engine is picking up speed
Ethereum ETF inflows aren’t just growing – they’re surging. The $ETHA fund recently surpassed $10 billion in assets under
management, making it the third-fastest ETF in history to reach that mark. Only Bitcoin’s $IBIT and $FBTC got there faster.
Even more telling, $ETHA’s assets doubled in just the past ten trading days. That kind of growth is rarely random – it suggests
serious institutional appetite. Since ETFs are required to buy the underlying asset, this wave of demand is putting steady, sustained pressure on Ethereum’s price.
It’s the start of what analysts call the
flywheel
effect: inflows drive buying, which drives price, which attracts more inflows. We saw it with Bitcoin ETFs in early 2024. Ethereum may be next.
Smart money is building quietly
ETFs aren’t the only drivers. Several public companies have begun adding Ethereum to their treasuries, taking a page out
of the Bitcoin 2021 playbook. Firms like BitMine Immersion and SharpLink Gaming now hold over $1 billion in ETH each – a signal that Ethereum is being taken seriously not just as a technology but as a long-term store of value.
Source: Lookonchain
On-chain data supports the trend. According to Glassnode, exchange balances are at their lowest since 2016, meaning more
ETH is being pulled into cold wallets and staking contracts.
Source: Glassnode
First-time ETH buyers have jumped by 16% since early July, and more than 28% of ETH is now staked – effectively locked out
of circulation.
Source: Eric Balchunas, Bloomberg Intelligence, X
This isn’t a case of a few whales making noise. It’s a widespread tightening of supply – just as institutional demand heats
up.
So why isn’t ETH exploding yet?
Here’s the twist: despite the flood of interest and shrinking supply, Ethereum is still trading around $3,800 – roughly 22%
below its all-time high. That’s left some traders scratching their heads.
But the explanation is simple. Institutions don’t chase rallies. They build exposure methodically, often over weeks or months.
This capital isn’t flooding the market in a FOMO frenzy – it’s trickling in with precision. In some cases, ETF demand may even be offsetting existing sales, resulting in a neutral short-term price effect.
Regulation is also part of the story. Since the SEC
greenlit Ethereum ETFs in 2024, the market has matured. It’s less euphoric and more deliberate, dampening speculative volatility but also adding staying power.
A bull market without the FOMO
Despite the subdued price action, Ethereum’s fundamentals are quietly flashing green. Glassnode reports that over 94% of
the ETH supply is now in profit, yet sentiment remains modest. The NUPL score – a key sentiment indicator – is sitting comfortably in the “optimism” zone, far from the “euphoria” levels that usually precede major tops.
Derivatives markets tell a similar story. Open interest in ETH futures has surged past $56 billion, but funding rates remain
moderate. That means leverage isn’t running wild – another sign that this rally has room to grow.
In short, Ethereum might be sitting in a rare sweet spot: demand is rising, supply is tightening, and the market hasn’t overheated.
At the time of writing, the surge towards $4,000 is still on, and prices are in price discovery mode. If we see a price reversal,
though, prices could find support at the $3,590 support level. If we see a price crash, we could see prices finding support at the $2,470 and $1,800 support levels.
Source: Deriv X
Disclaimer
The information contained within this article is for educational purposes only and is not intended as financial
or investment advice. We recommend you do your own research before making any trading decisions.
This information is considered accurate and correct at the date of publication. Changes in circumstances
after the time of publication may impact the accuracy of the information.
The performance figures quoted are not a guarantee of future performance.
