Ethereum Rallies to Six-Month High on ETF Inflows

Published: 2025-07-18 06:05:45 |

Ethereum has surged over 10%, climbing to a six-month high as institutional inflows topped $500 million into spot ETFs. Speculation around SEC approval of a spot Ethereum ETF fueled the rally, compounded by the post-Merge deflationary model—reduced issuance and token burns. Demand for decentralized finance also rose. Asset managers such as Grayscale and BlackRock saw AUM in ETH ETFs jump 30% week-on-week. On-chain metrics, including active addresses and transaction volume, rose 25%, while futures open interest hit a record. Layer-2 networks like Arbitrum and Optimism continue to drive DeFi activity ahead of EIP-4844. Traders can expect heightened volatility as Ethereum’s fundamentals and market psychology align for bullish momentum.

Bullish

The convergence of strong ETF inflows and robust on-chain metrics underpins a bullish outlook for Ethereum. In the short term, increased trading volume and futures interest will fuel volatility, offering trading opportunities. Over the longer horizon, reduced ETH issuance, deflationary burns, and growing DeFi activity, particularly on Layer-2 networks ahead of upgrades like EIP-4844, strengthen fundamental demand. Institutional adoption by major asset managers further validates Ethereum’s value proposition, likely supporting sustained price appreciation.