Ethereum Price Surges Over 20% Amid Growing Institutional Interest

Ethereum’s price has surged by 21.7% in the past week, crossing $3,600. A significant inflow into Ethereum ETFs and increasing investments from publicly listed companies are key drivers. There’s a growing belief that Ethereum could soon exceed its all-time high. Bitcoin’s declining market dominance might suggest an upcoming altcoin rally.

Ethereum has seen an impressive surge in its price lately, crossing the $3,600 mark. In just seven days, it has rocketed up by 21.7%, and within the last 24 hours alone, it’s seen a rise of over 7%. So, what’s behind this sudden spike? Well, a whopping $0.72674 billion flowed into Ethereum ETFs on Wednesday — the highest single-day net inflow recorded. This significant investment is a key contributor to the recent price increase of the cryptocurrency.

As if that wasn’t enough, the number of publicly listed companies investing in Ethereum is on the rise — which seems to signal the beginning of a new bullish cycle for altcoins, including Ethereum.

On July 18, Caixin News reported that U.S. Congress passed notable legislation concerning cryptocurrencies, which could further bolster the market. Not to forget, Bitcoin is still leading as the dominant asset, but Ethereum is making noteworthy strides. CoinMarketCap shows that while Ethereum’s price has significantly increased, its ETF segment is attracting more and more institutional capital.

Recent data reveals that since July, Ethereum ETFs have accumulated a total net inflow of about $2.27 billion, marking the highest monthly inflow since these funds debuted in July 2024. A significant chunk of that came from Blackrock’s Ethereum ETF, which alone brought in around $0.499 billion in a single day. Currently, the Ethereum ETFs hold around 4% of Ethereum’s total market value, indicating a growing institutional interest in the cryptocurrency as a long-term asset instead of merely a trading tool.

Adding to the current optimism is the involvement of major players in the market. For instance, BitMine Immersion, backed by PayPal’s co-founder Peter Thiel, has further bolstered its Ethereum position by $0.5 billion, pushing its total holdings over the billion mark. They’ve announced ambitions to control about 5% of all Ethereum staked or held. And that’s not all — SharpLink Gaming has also entered the fray, acquiring $0.225 billion worth of Ethereum.

The insight from analysts sheds light on the bullish sentiment brewing. Rachael Lucas from BTC Markets points out that Ethereum is increasingly seen as valuable in a long-term context. Meanwhile, Nick Ruck, director at LVRG, suggests that the ever-growing demand is making traders increasingly aware that Ethereum might still be undervalued. The fundamentals are there, and with limited growth in supply predicted, enthusiasm is high that Ethereum could break its all-time high of $4,600 from 2021.

Another interesting tidbit is the decline in Bitcoin’s market dominance, which fell to 63.09%, down by 2.59% in the past week. Historically, such shifts in dominance can signal the onset of an altcoin rally. Coupled with other factors like supply tightening due to staking and institutional buy-ins, the stage is set for what could be a vibrant period for altcoins.