- Key catalysts include over $1.17 billion in June ETF inflows, $888 million in weekly Ethereum stablecoin reserve growth, and shrinking exchange reserves.
- Large holders are accumulating ETH at the fastest rate since 2017, even during price dips.
Ethereum (ETH) price is showing renewed strength, gaining 6% in the past 24 hours to reach $2,600. Notably, today's ETH rally accompanies a 79% surge in daily trading volume to $27.58 billion. Data from Coinglass reveals ETH's open interest in futures markets increased by 7.56% to $34.4 billion, highlighting strong bullish sentiment among traders.
After a 45% correction in Q1, ETH price rebounded strongly in Q2 with 36.5% gains. As Q3 begins, Ethereum is gaining fresh momentum. With a 5% weekly gain, bullish sentiment appears to be returning, with a strong breakout above $2,544 as mentioned in our previous analysis.
Crypto market analyst Eric Connor noted several bullish factors aligning that could drive ETH prices higher. Let's examine four key indicators that may fuel ETH's rally.
1. Stablecoin Growth Could Provide Liquidity Boost for Ethereum Rally
Ethereum remains the backbone of the stablecoin ecosystem. While stablecoin market capitalization on the network peaked at $251 billion, it still holds a robust $126.31 billion today—up $888.92 million last week.
👉 Discover how stablecoins impact Ethereum's ecosystem
Tether leads with $64.12 billion, followed by USDC at $38.10 billion and Ethena's USDE at $5.09 billion. This sustained demand reflects strong on-chain activity and continued confidence in Ethereum's infrastructure.
2. Rising ETF Inflows Show Institutional Interest Remains Strong
Spot ETH ETF inflows have increased significantly over the past month. In June alone, these investment products saw over $1.17 billion in net inflows.
The positive trend continues into July, with:
- $54.8 million inflow on July 1 for BlackRock's ETHA
- $10 million additional inflow for Grayscale's ETHE
This sustained demand from traditional finance signals growing institutional confidence in Ethereum's long-term potential.
3. Ethereum Exchange Reserves Decline
Crypto exchange data shows ETH supply on centralized platforms has steadily decreased from 19.51 million at 2025's start to 19.03 million currently. This reduction in selling pressure creates conditions where renewed demand could fuel faster price breakouts.
4. ETH Whale Activity Intensifies
Wallets holding 1,000-10,000 ETH accumulated over 800,000 ETH daily during one June week—marking the most aggressive buying since 2017. This accumulation occurred despite a 1.62% ETH price dip, signaling growing conviction among large investors.
👉 Learn about Ethereum whale behavior patterns
Frequently Asked Questions
What's driving Ethereum's current price surge?
The combination of ETF inflows, stablecoin growth, reduced exchange supply, and whale accumulation creates perfect conditions for ETH's rally.
How significant are ETH ETF inflows?
June's $1.17 billion inflow demonstrates strong institutional interest, with BlackRock's ETHA alone attracting $5.3 billion year-to-date.
Why do stablecoin reserves matter?
They indicate liquidity availability and network activity—key factors for sustaining price rallies.
What does shrinking exchange supply mean?
Fewer ETH available on exchanges reduces selling pressure, making price surges more likely when demand increases.
How do whale purchases affect ETH's price?
Large accumulations typically precede price rallies as they signal smart money positioning before major moves.
With rising ETF inflows, escalating stablecoin activity, falling exchange reserves, and whale accumulation, Ethereum appears poised for a major breakout. A clean move above the $2,600 resistance level could trigger a strong bullish rally.