Ethereum surges 50% last month...highest in three years

Doohyun Hwang

Summary

Ethereum (ETH) surged by over 50% in July, marking the sharpest rise in the past three years.
It was noted that inflows to spot ETFs listed in the U.S. and company purchases of Ethereum fueled the upward momentum.
However, the $4,000 resistance level and reduced trading volumes in the summer off-season could act as short-term headwinds.

Ethereum (ETH) soared by over 50% in July, marking the steepest rise in the past three years. Analysts attribute this momentum to a large influx of funds into spot ETFs listed in the United States, as well as continued Ethereum purchases by companies.

This is the first time Ethereum has risen more than 50% in a month since the collapse of major projects in 2022, such as Terra, Luna, 3AC (Three Arrows Capital), and Celsius. However, analysts note that this surge is different from typical rebounds after a crash, as it was driven by institutional capital and inflows from the capital markets.

According to data from Sosovalue, U.S.-listed Ethereum spot ETFs saw net inflows totaling $5.4 billion in July alone—the strongest influx since the launch of Ethereum spot ETFs.

Institutional and listed companies also rapidly increased their asset allocations. To date, listed companies have added a total of $6.2 billion worth of Ethereum to their holdings. Bitmine and SharpLink are prime examples. In addition, new firms such as ETHzilla and Ether Machine have also attracted institutional funds and are believed to have made large-scale purchases.

However, in the short term, there are concerns that the $4,000 resistance level, which has persisted since last year, may weigh on prices. Traditionally, trading volume declines in the summer off-season, which could also dampen the current bullish trend.

ETH