Ethereum Bull Run Intensifies! ETF Fund Inflows and Whale Accumulation

Ethereum Rebounds with Institutional Fund Inflows... Rising Trend Amidst Whale Accumulation

▲ Ethereum (ETH)/AI Generated Image ©

Ethereum (ETH) showed a stronger upward trend than Bitcoin as institutional funds flowed back into US spot Ethereum ETFs and large investors continued to accumulate. The recovery in risk asset preference due to the US economic slowdown also supported the rise.

According to CoinMarketCap, a cryptocurrency market data aggregator, on July 3 (local time), Ethereum rose by 3.98% over 24 hours to reach $1,769.77, showing a higher increase than Bitcoin, which rose by 2.19% during the same period. The market is focusing on the shift of US spot Ethereum ETF fund flows to net inflows as a major reason for the rise.

As of July 2, US spot Ethereum ETFs recorded a net inflow of $29.08 million, ending a nine-consecutive trading day streak of net outflows. According to SoSoValue data, BlackRock's ETHA led the net inflow by attracting $29.74 million in funds. As record fund outflows continued throughout June, this net inflow was interpreted as a signal of a potential recovery in institutional investor sentiment.

Positive trends were also observed in on-chain metrics. Whale investors' accumulation of Ethereum has reportedly increased to an all-time high this year. On July 1, 'Ethereum Institutional,' a non-profit organization involving co-founder Joseph Lubin and Digital Asset Treasury (DAT, a cryptocurrency treasury strategy firm) like BitMine, was launched. This organization aims to connect traditional finance with the Ethereum-based tokenization market, raising expectations for future institutional adoption.

Technically, the short-term trend has also improved. Ethereum broke through the 38.2% Fibonacci retracement level of $1,742, establishing a foundation for an upward movement. The market anticipates further gains to the $1,800-$1,889 resistance zone if the $1,742 support level is maintained. Additionally, the Glamsterdam upgrade, scheduled for the third quarter of this year, is cited as a mid-to-long-term bullish factor. However, analysis suggests there's still a possibility of a correction to $1,650 if it falls below $1,700 again.

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