Ethereum [ETH] has been gaining significant attention from Wall Street institutions, with U.S. spot ETH ETFs experiencing nine consecutive weeks of net inflows. This week alone, the inflows amounted to $703 million, with daily inflows peaking at $383.10 million on July 10. This level of inflow is reminiscent of late 2024, when ETH surpassed the $4,000 mark.
A recent report by Fidelity has contributed to this momentum, describing ETH as more than just a tech play, but as the currency of an emerging economy. According to Fidelity, Ethereum powers decentralized finance (DeFi), acts as collateral, and offers “dividends” through staking, making it increasingly attractive to Wall Street giants seeking yield.
Additionally, Bitwise has projected that the tokenized assets market could expand by 4,000 times over the next few years. Given that Ethereum commands 50% of the stablecoin market and over 75% of tokenized treasuries, it remains central to this explosive trend. This narrative is further bolstered by Fundstrat’s Tom Lee, who believes the booming stablecoin narrative will drive ETH higher, noting that even former Bitcoin-focused players are pivoting to Ethereum’s ecosystem.
Analysts are optimistic about ETH’s potential to reclaim the $4,000 mark by late July. Ken Teng, also known as Chicken Genius, predicts this based on the current data showing a sharp drop in exchange inflows in July, indicating reduced sell pressure as ETH climbed from $2,200 to $3,000. Reclaiming $3,000 as support would mark a key technical milestone, as this zone acted as a floor through 2024 before breaking down earlier this year. Technical signals like the Supertrend indicator still point to a strong buy, but traders remain cautious, with ETH’s daily RSI already entering overbought territory, suggesting a potential cooling of the rally if May’s pattern repeats.
Whether ETH can break and hold above $3,000 will be crucial in determining its trajectory toward $4,000. Institutional interest, tokenization hype, and the stablecoin surge continue to bolster the network’s fundamentals, making the outlook for ETH increasingly bullish. 