Ethereum ETF Inflows Fuel 56% Rally as Futures Top BTC
Ethereum surged 56% in July to a three-year high of $3,862, fueled by over $5.37 billion of spot Ethereum ETF inflows across 19 consecutive days. BlackRock’s iShares Ethereum ETF surpassed $10 billion in assets under management just 251 days after launch. For six days, Ethereum ETF inflows outpaced Bitcoin ETFs, signaling shifting investor sentiment.
In the futures market, Ethereum’s perpetual contract volume overtook Bitcoin for the first time in three years. Analysts note a significant cluster of short positions just above $4,000, where $930 million in potential liquidations could trigger a rapid advance toward $4,500. However, the RSI shows bearish divergence, indicating weakening buying pressure. A decisive break above $4,000 with strong volume could spark further gains; failure may prompt a retracement to $3,700 or as low as $3,200–$3,300.
Bullish
Heavy spot Ethereum ETF inflows and a record ETF milestone have driven strong buying pressure, creating a bullish momentum. The shift in perpetual futures volume overtaking Bitcoin and the potential short squeeze above $4,000 suggest further upside toward $4,500 in the short term. Although RSI divergence signals some caution, the dominant inflows and technical setup point to continued strength. Long-term fundamentals, such as network revenue growth, remain subdued, but current market dynamics favor a bullish outlook.