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Ethereum Rises 2.59%... $365.17 Million Pours into ETFs
▲ Ethereum (ETH), Bitcoin (BTC) ©Godasol
Driven by the largest monthly net inflow into Ethereum spot ETFs this year and the launch of new institutional investment products, Ethereum (ETH) recorded a higher rise than Bitcoin (BTC). As institutional demand recovers and regulatory uncertainty eases, breaking the $1,950 mark has emerged as a key factor for the next upward trend.
According to CoinMarketCap, a cryptocurrency market aggregation site, on August 3 (local time), Ethereum recorded $1,893.53, up 2.59% in the last 24 hours. While Bitcoin remained in a narrow range, ETH showed clear relative strength.
The core driver of the rally is the inflow of funds into US Ethereum spot ETFs. These products recorded a total net inflow of $365.17 million in July, more than double the inflow into Bitcoin spot ETFs, and achieved their best monthly performance since the beginning of the year. This was evaluated as a sign of increasing institutional investor confidence in Ethereum as a regulated asset.
Morgan Stanley's launch of an Ethereum spot ETF on July 28 also boosted investor sentiment. The fee for this product was set at 0.14%, and Morgan Stanley is leveraging its network of 16,000 financial advisors to target institutional and investor demand. In the future, the daily ETF fund flows of major asset managers like BlackRock are considered indicators to gauge whether the current inflow trend will continue.
Improved regulatory environment also contributed to the upward trend. The US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) classified Ethereum as a non-security product in March, reducing legal uncertainty and leading to a shift of funds from Bitcoin to major altcoins. The market is also closely watching the congressional progress of the US cryptocurrency market structure bill, the CLARITY Act, which would codify this classification.
Technically, $1,850-$1,870 is a key support zone, and if the upward trend continues, it could retest $1,950 near the 100-day moving average, a level it has failed to break multiple times. A daily close above $1,950 could signal a more sustained uptrend, but a break below $1,850 carries the risk of falling to $1,750. The short-term outlook is 'cautiously bullish,' with the US Consumer Price Index (CPI) on August 12 and Federal Reserve Chairman Kevin Warsh's Jackson Hole speech on August 27-29 expected to be key variables.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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