Ethereum ETF Hype Drives ETH Toward $4,000—Will It Break Records?

Ethereum has staged an impressive rally, climbing for six consecutive days to reach its highest valuation since early January. As of the latest data, ETH surged to approximately $3,580—marking a remarkable 158% recovery from its May lows and positioning the asset among the top performers in the crypto market this week.

ETF Inflows Fuel Ethereum’s Breakout

According to data from SoSoValue, this price upswing has closely tracked massive inflows into Ethereum exchange-traded funds (ETFs). Last week alone, these funds recorded an unprecedented $2.1 billion in new assets—doubling the $907 million seen the previous week. The recent run of inflows also marks ten straight weeks of net gains, the longest streak since Ethereum ETFs received approval in September 2023.

BlackRock’s ETHA ETF continues to lead the pack, holding $9.17 billion in assets, which represents nearly half of all Ethereum ETF holdings. This surge underscores growing institutional appetite for Ethereum-based investment vehicles, as well as confidence in the asset’s long-term utility.

Bullish Catalysts Beyond ETFs

Ethereum’s recent strength can also be attributed to a mix of favorable macro and industry-specific developments. Notably, the signing of the GENIUS Act in the U.S. has sent bullish signals across the crypto space. Additionally, corporate accumulation trends have gained traction, with SharpLink emerging as one of Ethereum’s top corporate holders—mirroring a strategy similar to that of MicroStrategy with Bitcoin.

Momentum has also been reinforced by a surge in futures market activity. Open interest in Ethereum futures hit an all-time high of $51 billion over the weekend, nearly doubling from June’s trough of $28 billion. This increase is often seen as a strong indicator of heightened trading interest and market engagement.

Meanwhile, broader crypto metrics support the bullish trend. The total supply of stablecoins has reached an all-time high of $130 billion, while assets locked in decentralized finance (DeFi) protocols have climbed to $178 billion, reflecting growing on-chain activity.

Technical Indicators Signal Continued Strength

From a technical perspective, Ethereum appears to be in a robust uptrend. Since bottoming out at $1,382 in April, ETH has more than doubled, and recent movements have formed a golden cross pattern—a bullish signal where the 50-day moving average overtakes the 200-day average.

The Relative Strength Index (RSI) continues to rise, indicating growing momentum, while the Average Directional Index (ADX) has surged to 38, its highest reading since mid-May. This combination of indicators points to a rally that is both powerful and sustained.

Still, analysts caution that Ethereum is entering overbought territory, which may result in a short-term correction before the trend resumes. Should the uptrend continue, the next significant resistance level sits at the psychological threshold of $4,000.

Outlook: Short-Term Risk, Long-Term Promise

Ethereum’s current trajectory reflects a perfect storm of technical strength, institutional investment, and favorable regulatory signals. While the overbought status could trigger a minor pullback, the broader indicators suggest a bullish continuation toward $4,000 and possibly beyond. Whether driven by ETF inflows, corporate holdings, or DeFi expansion, Ethereum appears well-positioned for further gains—though short-term volatility remains a possibility for traders and investors alike.