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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 cryptocurrency market tracking site CoinMarketCap on July 3 (local time), Ethereum rose 3.98% over 24 hours to record $1,769.77, showing a higher increase rate than Bitcoin, which rose 2.19% during the same period. The market is focusing on the shift to net inflows in US spot Ethereum ETF fund flows as a major reason for the increase.
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's aggregation, 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 indicating the potential recovery of institutional investor sentiment.
Positive trends were also confirmed in on-chain indicators. Whale investors' accumulation of Ethereum has increased to an all-time high this year, and on July 1, 'Ethereum Institutional,' a non-profit organization involving digital asset treasuries (DAT, crypto financial strategy firms) such as co-founder Joseph Lubin and BitMine, was launched. This organization aims to connect traditional finance with the Ethereum-based tokenization market, raising expectations for expanded institutional adoption in the future.
Technically, the short-term trend has also improved. Ethereum broke through the 38.2% Fibonacci retracement level of $1,742, establishing a basis for an upward movement. The market predicts further upside potential 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 also mentioned as a mid-to-long-term bullish factor. However, analysis suggests there is still a possibility of a correction down to $1,650 if it falls below $1,700 again.
*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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