Cryptocurrency Ethereum experiences profit-taking, yet its price surge might persist
In the world of cryptocurrencies, Ethereum (ETH) has been making waves, particularly in the second half of 2025. A significant surge in institutional demand for Ethereum Exchange Traded Funds (ETFs) has been observed, with the trend showing no signs of slowing down.
One of the key players driving this demand is BlackRock’s ETHA fund, which has amassed over $10 billion in assets under management (AUM). This growth in institutional confidence has led to a shift towards Ethereum over Bitcoin in many cases.
Last week alone, Ethereum spot ETFs recorded inflows of over 588,000 ETH, nearly 17 times the historical average. This influx has coincided with a price surge of around 36–50% in July 2025, with Ethereum’s price rising from about $1,750 in early April to $3,597 by late July.
The influx of institutional funds has led to increased purchasing and concentration of Ethereum supply. In fact, the ETHA fund alone controls over 2% of the circulating Ethereum.
The price rally is partly attributed to Ethereum’s deflationary mechanisms like daily token burns (~8,470 ETH burned daily), which improve scarcity dynamics. Compared to Bitcoin ETFs, Ethereum ETFs have outperformed regarding inflows and investor preference, with Bitcoin ETFs seeing outflows on days when Ethereum ETFs saw large inflows.
However, challenges remain, such as the lack of staking yields in ETFs and regulatory uncertainties. Upcoming regulatory clarity, such as the GENIUS Act, could further catalyze institutional participation.
On-chain data from Glassnode shows profit-taking around the $2,520 cost basis, with nearly 2 million ETH remaining held by addresses that showed profit-taking. Despite this, new demand continues to absorb supply, as evidenced by data from Lookonchain, which confirms fresh wallets are buying Ether, with wallet 0x8eEa receiving 25,213 ETH in the last 24 hours.
At the time of writing, ETH is down nearly 3% on the day, pulling back from the upper Bollinger Band. Key resistance for ETH is near $3,933, and a breakout above this level could push ETH toward $4,200. However, in case of downside pressure, ETH could see a drop to $3,300 or even $3,000.
It is important to note that this article does not provide financial or investment advice. It is recommended to verify information and consult with a professional before making decisions based on the content. The Bollinger Bands are still expanding, indicating continued volatility and potential upside, while the RSI is in the overbought zone, suggesting potential consolidation or correction before the next leg up.
In conclusion, the current trend shows a pivotal moment in Ethereum’s adoption by large financial investors. The institutional demand for Ethereum ETFs is driving both price appreciation and market legitimacy, marking a significant shift in the cryptocurrency landscape.
[1] Glassnode (2025). Ethereum ETF Inflows Hit Record Highs. Retrieved from https://glassnode.com/research/2025-07-15/ethereum-etf-inflows-hit-record-highs/
[2] Santiment (2025). Ethereum ETFs Outperform Bitcoin ETFs. Retrieved from https://santiment.net/ethereum-etfs-outperform-bitcoin-etfs/
[3] Lookonchain (2025). Fresh Wallets Buying Ether. Retrieved from https://lookonchain.com/analysis/20250725/fresh-wallets-buying-ether
- The surge in demand for Ethereum Exchange Traded Funds (ETFs) has primarily been driven by institutional investors, such as BlackRock's ETHA fund, leading to increased investment in Ethereum.
- Compared to Bitcoin ETFs, Ethereum ETFs have been favored by investors, as shown by their higher inflows, suggesting a growing preference for Ethereum over Bitcoin in the investment world.
