Ethereum Reclaims $1,900... Are Institutions Buying Again?

▲ Ethereum (ETH)/ChatGPT Generated Image ©

The recovery of Ethereum (ETH) to $1,900, breaking through overall market stagnation, was driven by institutional funds returning to Ethereum spot ETFs and all-time high staking levels. Ethereum recorded a 1.73% increase over 24 hours, reaching $1,907.90, and its correlation with gold was 74%, indicating it was simultaneously influenced by macroeconomic factors and demand for inflation hedging.

According to cryptocurrency market data aggregator CoinMarketCap on August 6 (local time), US Ethereum spot ETFs recorded a net inflow of $53.8 million on August 4, breaking a four-consecutive-day streak of net outflows. BlackRock's iShares Ethereum Trust (ETHA) absorbed $42.5 million, accounting for approximately 79% of the total inflow. This was the largest daily net inflow in the past week, indicating that institutional buying is re-entering at the current price level.

On the supply side, increased staking supported the price. According to Token Terminal, Ethereum's staking ratio reached an all-time high of 34.4%, with approximately 40 million ETH locked in the network. This means that confidence among long-term holders is maintained amidst a reduction in tradable circulating supply.

Technical trends also improved. Ethereum surpassed both its 7-day moving average of approximately $1,877 and its 30-day moving average of approximately $1,858, with trading volume also increasing by 27%. The simultaneous rise in price and volume suggests a breakthrough accompanied by market participation rather than a mere low-liquidity rebound. For further gains, Ethereum needs to close above the 23.6% Fibonacci retracement resistance level of $1,914.

The short-term outlook is summarized as cautiously bullish. If $1,900 converts from a resistance level to a support level, upward momentum can be sustained. However, if the daily candle closes below the critical turning point of $1,865, the short-term bullish structure could be invalidated. In that case, the likelihood of retesting the $1,844 support level increases. Whether ETF net inflows continue over the next 48 hours will be a key indicator to confirm if this rally is a sustainable trend reversal.

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