- BlackRock’s iShares Ethereum Trust (ETHA) contributed significantly with $281.3 million in inflows over the past week, highlighting growing institutional interest.
- With speculation that the SEC may soon approve staking for Ethereum ETFs, companies like Fidelity and Grayscale are modifying their proposals to include staking features.
For the seventh week in a row, more capital has flowed into Ethereum, with ETH price gaining significantly as it reclaimed the $2,700 mark. According to CoinShares, investors put in $296.4 million in ETH investment products last week, which added up to total inflows of $1.5 billion in the last seven weeks. The recent rise in the Ether price by the largest amount since last November’s U.S. elections shows a resurgence of interest in investors.
Ethereum ETFs Take The Lead
The increased desire for Ethereum ETFs, mainly among Americans, is what is behind the surge. More than 4.1% of inflows has flowed into BlackRock’s iShares Ethereum Trust (ETHA), which contributed $281.3 million. The new inflows have brought 15 days in a row of net inflows, showing that many investors wish to have Ethereum in their portfolios.
It is believed that a larger interest in stablecoins and tokenization is attracting more people to Ethereum ETFs, as Visa, Mastercard, and Stripe are now involved. Analysts from Bernstein, headed by Gautam Chhugani, explain that the rising popularity of stablecoins is influencing people’s views on Ethereum.
Stablecoins, working within the Ethereum network, are now considered important in the development of the digital economy. In a recent note, the analysts questioned, “If you believe in stablecoin-based payments innovation, why is the Ethereum network that mints the stablecoins and processes stablecoin transactions not valuable?” The shift in perspective shows that Ethereum is no longer viewed merely as a cryptocurrency but as an integral part of the blockchain ecosystem with real-world utility.
Besides the major trends in the market, interest in Ethereum is rising because the U.S. Securities and Exchange Commission (SEC) may soon allow staking within Ethereum ETFs. The SEC’s Division of Corporation Finance announced that certain staking could be outside securities regulation on May 29. Thereafter, market participants started talking about the possibility of approving staking-related ETFs in the near future.
Companies such as Fidelity, Grayscale, and Bitwise have contacted the SEC and applied to change their proposals, so that staking can be involved in their Ethereum ETFs, as highlighted in the previous story. Most recently, Invesco’s Galaxy Ethereum ETF filed to add the staking feature in its trust.
ETH Price Analysis Today
Amid the rise in Ethereum price, it tested an ascending trendline resistance after facing a rejection in previous days. So far, Ethereum seems ready to challenge the levels of $2,750 to $2,850, a range that has caused difficulty in surpassing since mid-May. Besides, Ethereum is being held back by the 200-day Simple Moving Average (SMA), and if it manages to overcome this, it may reveal a new upward movement, as reported previously.
As for the downside, Ethereum price could find support at around $2,400, while the main support level is near $2,250 and $2,100, due to the 50-day SMA. As the Relative Strength Index (RSI) stays above neutral, and the Stochastic Oscillator moves toward its neutral zone, there are signs that bullish momentum could continue if these technical indicators break higher.
