Ethereum climbed above $3,400 for the first time since January 2025, with a strong bullish rally driving up the price of the second-largest cryptocurrency.
Ethereum (ETH) surged past the $3,400 mark on Thursday, reaching its highest level since mid-January 2025. Strong exchange-traded fund (ETF) inflows and a large flow of institutional capital boosted confidence in the leading cryptocurrency.
The price of Ethereum increased more than 9% in the past 24 hours, reaching $3,449 before falling back slightly. ETH has experienced a 25% weekly rise, becoming the best-performing major crypto asset over that period, except Dogecoin.
Yesterday, spot Ethereum ETFs posted record-breaking net inflows of $726 million, led by a substantial $499 million investment into BlackRock’s ETHA fund. In total, eight out of nine ETFs recorded net gains on the day.
As a result, total inflows in the month of July rose to an impressive $2.27 billion. This represents the highest monthly figure since these products launched earlier in the year.
Elsewhere, other altcoins have also seen gains. Solana rose by 5.16% to $170.96, while XRP (5%) and BNB (3.44%) also posted increases. In comparison, Bitcoin edged up slightly, climbing by only 0.71%, as its market dominance slipped to around 63%.
Why has Ethereum (ETH) increased in value?
Much of Ethereum’s latest momentum is due to increased institutional activity. Several Nasdaq-listed firms, including BitMine, BTCS, and GameSquare, have invested over $1 billion collectively into Ethereum treasuries in recent months.
These purchases have reportedly added more than 570,000 ETH to corporate reserves. This has led to a further tightening of supply, while boosting confidence in Ethereum as a long-term digital asset.
Aside from ETFs, activity in Ethereum’s derivatives market has also surged. Open interest has risen by 1.84 million ETH this month in a sign of growing participation from leveraged traders. However, funding rates remain moderate, indicating fresh entries without excessive speculation. Traders often view this as a sign of a more stable and sustainable rally.
Ethereum’s network fundamentals have also played a part in the recent bullish rally. Since the Pectra upgrade in May, which introduced improvements to the staking process, staked ETH has grown steadily.
A net 1.51 million ETH was deposited into staking platforms between 1 June and 15 July. Treasury-linked entities are believed to be responsible for a significant portion of these increased deposit flows.
Many take advantage of the Ethereum (ETH) price surge
As the price of ETH has surged higher, various market participants have engaged in profit-taking and selling activities. Capitalising on the price movement was investment firm Trend Research. It offloaded 79,470 ETH, valued at $250 million at an average price of $3,145 over the past two days.
The company had acquired 184,115 ETH, worth $390 million, at an average price of $2,118 between February 26 and June 20. Their Ethereum holdings now stand at 105,664 ETH, valued at $354 million.
Meanwhile, another investor sold 98,610 ETH, valued at $278 million, at an average price of $2,819 over the past eight days. They continue to hold 35,022 ETH, which is valued at $117.5 million. The holder previously made over $30 million in profit from Ethereum.
Lastly, Argot Collective, a non-profit organization, sold 1,210 ETH for 4.09 million USDC. The foundation had received 7,000 ETH in operational funding from the Ethereum Foundation.
Looking ahead, technical breakouts and renewed institutional backing could drive Ethereum towards the $3,600 level.
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