Ethereum’s Price Surges Past $4,500
Ethereum had a significant rise recently, with its price crossing $4,500 for the first time since 2021 on Tuesday afternoon.
Last week alone, ETH jumped 26%, bringing its 30-day growth to over 50%. In comparison, Bitcoin only went up about 6% last week, showing nearly flat performance last month.
Trading on Ethereum was quite volatile, as more than $144 million worth of ETH short positions were liquidated over just 24 hours, according to data from Coinglass. Ethereum accounted for around $154 million of the total $403 million in crypto liquidations during that time.
What’s driving this massive increase? Part of the impact stems from billions heading into Ethereum’s exchange-traded products (ETPs).
Since the start of July, Ethereum has seen net inflows in ETFs for just three days, recording daily inflow peaks, particularly on Monday, which pushed investments over $1 billion.
Leading these inflows is BlackRock’s iShares Ethereum Trust ETF (ETHA), which matched prior records by bringing in $726 million.
On Monday alone, there was a net inflow of $170 million, and during the previous month, Ethereum’s ETFs outperformed those of Bitcoin.
The influx is further supported by new public finance companies accumulating ETH. Notable players like Sharplink Gaming and Bitmine Immersion Technologies have been actively investing.
These two companies hold the largest Ethereum reserves, collectively owning nearly $8 billion in ETH, as indicated by StrategicEthReserve data. They’ve been expanding these reserves, aiming for over $20 billion in balance sheets.
Sharplink recently raised about $900 million, with $400 million of that coming on Monday following certain announcements.
The interaction between finance firms and ETF inflows has led to around 8% of the total ETH supply remaining liquid, marking a 5% increase since April when companies began creating strategic Ethereum reserves.
Currently, Ethereum is trading at $4,502, just about 8% below its all-time high from November 2021.
Myriad’s predictions suggest that Ethereum could reach $5,000 by the end of 2025, with odds now at 77.7%. Last week showed a profit of more than 30% as the asset’s price has been rising.
