Ethereum’s stability at the $2,860 support level has captured the attention of investors, with this price point being tested multiple times since July 5.
A recent report from Deribit Insights suggests that Ether (ETH) is on the verge of a significant price surge following the approval of Ethereum exchange-traded funds (ETFs) in the United States. The report indicates that the strong support seen in July signals high demand from buyers, potentially paving the way for ETH to reach highs of $4,500.
The approval of Ether ETFs is expected to attract more institutional interest and investment, according to Deribit. This regulatory green light has made ETH more accessible and regulated, leading to a positive market sentiment with analysts anticipating substantial inflows.
On July 30, a significant amount of funds, totaling $33.6 million in net inflows, flowed into all nine spot Ether ETFs, demonstrating growing interest in the asset. However, data from Nansen on July 31 revealed almost $750 million in outflows from four out of five Ether ETFs in the following days.
Although Bitwise briefly surpassed BlackRock in total trading volume of Ether ETFs on July 30, the situation reversed by July 31. As of August 1, BlackRock’s holdings now represent 6.9% of assets under management (AUM), up from 5.59%.
The question remains whether ETH can surpass the $4,000 mark again, as it last did on March 14. Currently trading around $3,200, market sentiment for ETH is influenced by geopolitical events. Unlike Bitcoin ETFs, the launch of ETH ETFs did not result in equivalent inflows, possibly due to the SEC not approving staking.
Data from L2Beat shows that the total value locked (TVL) in the Ethereum network remains at 17.8 million, indicating a lack of sustained ecosystem growth.
In other news, the founder of THORChain has revealed plans for a ‘vampire attack’ on the entire DeFi ecosystem.