Ether Rallies 47% Amid Record ETF Inflows

Ether’s sustained rally has pushed its price to $3,600, marking a 47% surge in just one month. The sharp upward move is now dampening fears of a near-term correction, as robust “hard data” and critical macro trends suggest a rapid reversal is unlikely.

Recent activity in the US spot Ether (ETH) ETF market has been particularly striking. On Wednesday, ETFs attracted $727 million in inflows, the largest single-day net buy since Ether ETFs began trading in July 2024. These inflows mean more coins are held in cold custody and effectively removed from immediate resale, tightening market supply and supporting elevated prices.

Market observers point to this ETF boom as a major force behind Ether’s climb. "All the hard data that arrived this week argues against a rapid reversal," according to one hedge fund executive, emphasizing the cold storage effect that limits quick sell-offs.

Short-term Market Dynamics: Macro Trends and Policy Impacts

Current macroeconomic signals are considered mixed, not toxic. While June’s inflation ticked higher, ongoing pressure from the US administration for a more dovish Federal Reserve stance is viewed as bullish for crypto, including Ether.

The call for a potential three percentage point rate cut adds another tailwind for risk assets like Ethereum, reinforcing the current uptrend.

Caution persists against any immediate full retracements, with one fund highlighting that unless ETF demand collapses and the Fed signals a sharp hawkish pivot simultaneously, the probability of a deep washout—like the 30% October 2024 drop—remains low.

Ether’s price remains up 43% over the past 30 days. Still, several cautions linger about its upside limits. A move to $10,000 by year-end—amounting to a 190% gain in just over five months—would require extraordinarily bullish conditions.

Such explosive moves happened only during historic crypto booms: the 2017 ICO surge and the 2020-21 DeFi wave. As one investor paraphrased, “A $10K run is ambitious, but not impossible—conditions must align across strong ETF participation, network adoption, staking additions, and a consistent risk-on climate.”

Critical Support Levels and Global Macro Risks

Despite bullish momentum, market participants are closely watching $2,700 as a key support level. A drop below this threshold could invite further selling and drag Ether toward $2,300, risking a deeper correction.

Earlier this year, Ether managed to bounce back sharply from lows after worldwide macro tensions, suggesting that investor confidence still hinges on global trade dynamics and policy shifts.

For instance, when new tariffs by the US triggered trade war fears, the market’s mood tilted. However, signals of a potential deal and diplomatic talks helped restore calm. If macro conditions turn, they can quickly change the narrative for Ethereum and crypto markets broadly.

Several factors could tip the balance. Weakening ETF inflows, changing interest rate signals, or a macro policy shock could stall the current rally.

Conversely, if Ethereum continues to gain mainstream traction through L2 rollups, staking on ETFs, and real-world use cases, its supply could tighten further, and even ambitious price targets would come back into play.

“If all these engines fire together, a sprint to $10K can’t be dismissed,” said one crypto market veteran, underscoring the high-stakes environment now facing Ether.

Key Takeaways

Ether price surges 47% with ETF inflows seen as biggest support
Macro uncertainty from US Fed viewed as bullish, correction risk low
$2,700 remains critical support, correction possible below this level

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Ether Price Surge: Is a Major Correction Now Off the Table?

Short-term Market Dynamics: Macro Trends and Policy Impacts

Critical Support Levels and Global Macro Risks

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