Ethereum price set for 55% surge as ETF buying spree enters 14th week

Ethereum has faced a three-day decline, shedding nearly 10% from its recent weekly high. Despite this pullback, investor appetite for ETH remains strong, with surging inflows into Ethereum exchange-traded funds (ETFs) and growing on-chain activity suggesting that the rally could still have significant momentum.

Ethereum ETF Inflows Outpace Bitcoin

On August 16, Ethereum’s price fell back to around $4,410, a sharp retreat from its earlier peak this week. Even so, the token remains more than 217% above its April low, reflecting its long-term resilience. Analysts believe that ETH could still climb another 55% if current fundamentals hold.

Institutional and retail investors alike are piling into ETH-focused funds. Data from SoSoValue revealed that Ethereum ETFs attracted $2.8 billion in inflows this week, compared to just $547 million for Bitcoin ETFs. This marks the fourth consecutive week that Ethereum has outpaced Bitcoin in ETF demand.

Currently, Ethereum ETFs collectively manage $30 billion in assets. Leading the pack is BlackRock’s ETHA, with $15.9 billion under management and a daily trading volume of $2.4 billion on Friday—clear evidence of swelling demand. Other major players include funds managed by Grayscale, Fidelity, and Bitwise.

Ethereum’s Expanding Role in DeFi and Stablecoins

The growth in Ethereum ETFs reflects more than speculative interest—it’s also tied to Ethereum’s dominance in the broader crypto ecosystem. The network continues to lead the decentralized finance (DeFi) market, commanding 68% of total market share. The total value locked (TVL) across Ethereum-based protocols has surged to $203 billion, reinforcing its position as the backbone of DeFi.

Stablecoins are another key driver of Ethereum’s momentum. Over the past 30 days, the supply of stablecoins on Ethereum has grown by 10% to $144 billion, while the number of active addresses linked to these assets has jumped 30% to 2.6 million. This expansion highlights Ethereum’s role as the preferred blockchain for dollar-pegged assets and liquidity movement.

At the same time, Ethereum’s average transaction volume climbed to $878 billion, outpacing Tron’s $664 billion and strengthening ETH’s position as the leading settlement layer for crypto transactions.

What This Means for ETH’s Outlook

While the short-term dip may spook some traders, the bigger picture suggests confidence in Ethereum’s future remains intact. Strong ETF inflows, increased DeFi participation, and robust stablecoin activity all point toward sustained demand.

If these trends continue, Ethereum’s latest pullback could simply be a breather before the next leg of its upward rally.