Ethereum has been capturing everyone’s attention as it steadfastly maintains its support level of $2,860, a price point that has been tested multiple times since July 5.
According to a report from Deribit Insights, Ether (ETH) is expected to experience significant growth following the recent approval of Ethereum exchange-traded funds (ETFs) in the United States. The report suggests that the strong support seen throughout July indicates a high demand from buyers, potentially leading to a surge in price up to $4,500.
The approval of the Ether ETFs is anticipated to attract more institutional attention and investment, as it makes the underlying crypto asset more accessible and regulated. This has generated positive market sentiment, with analysts predicting substantial inflows into the market.
A clear example of this increased interest can be seen in the significant influx of funds on July 30, with $33.6 million in net inflows recorded across all nine spot Ether ETFs.
However, recent data from Nansen reveals a different trend. On July 31, there were outflows of nearly $750 million from the Ether ETFs in four out of the five trading days recorded. This led to Bitwise briefly surpassing BlackRock in terms of total trading volume of the Ether ETFs on July 30, although this was reversed by July 31.
As of August 1, BlackRock’s holdings account for 6.9% of the assets under management (AUM), up from 5.59%, according to Nansen data.
The question now is whether ETH can surpass the $4,000 mark again. Currently priced around $3,200, the market sentiment is influenced by ongoing geopolitical events. Unlike the launch of Bitcoin ETFs, ETH did not experience equivalent inflows, likely due to the US Securities and Exchange Commission (SEC) not approving staking.
Additionally, the Ethereum network’s total value locked (TVL) of 17.8 million remains unchanged, according to L2Beat. This suggests a lack of continuous growth in the ecosystem.
In other news, the founder of THORChain has revealed his plan to “vampire attack” the entire decentralized finance (DeFi) industry, as reported by the magazine.