Ethereum Price Reclaims $3,700 as ETF Catalysts and Whale Accumulation Tighten Bullish Setup
ETH-USD rebounds 20% from July lows as spot ETF approvals near, whale wallets add over 240K ETH, and inflation data supports a continued macro bid | That's TradingNEWS
Ethereum (ETH-USD) Reclaims Bullish Momentum as ETF Inflows and Whale Demand Strengthen Bid
ETH-USD surges toward $3,700 backed by institutional flows and macro tailwinds
Ethereum (ETH-USD) is pushing toward $3,700, recovering sharply from its recent $3,440 lows after a wave of institutional inflows and improved on-chain accumulation. The price surge comes amid renewed ETF optimism, with spot Ethereum ETF approvals expected to unlock substantial demand in the second half of 2025. Currently trading near $3,675, Ethereum has climbed over 20% in the last two weeks, fueled by an uptrend in long-term holder behavior and a broader rebound across digital assets.
ETF narrative ignites ETH-USD rally as traders front-run approval
The Ethereum spot ETF narrative regained momentum after SEC officials signaled a smoother regulatory pathway for crypto-linked ETFs following the success of spot Bitcoin products. Market makers and institutional desks have reportedly increased ETH exposure, anticipating approval by Q3. This development has injected substantial volume, particularly among U.S.-based funds. Ethereum's strong correlation with Nasdaq tech names, including NVDA and META, has created a favorable risk backdrop as equity markets rally on AI and soft-landing optimism.
Whale wallets add over 240,000 ETH as long-term holders re-enter the market
On-chain data shows a significant re-accumulation trend underway. Whale addresses holding over 10,000 ETH have added more than 240,000 ETH in July alone, according to Glassnode, signaling renewed confidence among large holders. Exchange reserves have fallen by 2.3% in the same period, pointing to reduced selling pressure. Meanwhile, staking activity has resumed its upward climb, with over 32.8 million ETH now locked—representing 27% of total supply. The supply dynamics indicate tightening liquidity and a bullish positioning into the ETF launch window.
Technical breakout forms above $3,620 as $3,820 becomes the next target
From a technical perspective, ETH-USD broke decisively above its short-term descending trendline at $3,620, reclaiming both the 50-day and 100-day moving averages. The breakout clears the path toward resistance at $3,820, a level last tested in early June. If bulls maintain momentum, the next target sits near $4,050, the post-ETF high from March 2025. On the downside, immediate support sits at $3,600, followed by $3,520. A break below $3,440 would invalidate the bullish structure.
Macro conditions align as inflation cools and dollar strength fades
CPI data released last week showed inflation easing to 2.7% YoY, below expectations, which triggered a bond rally and pressured the U.S. dollar. ETH, which tends to rally in weaker dollar environments, gained further tailwinds from falling real yields and narrowing rate cut expectations. With the Fed in a holding pattern and risk appetite broadening across asset classes, Ethereum benefits from the same macro bid that's driving equities to record highs.
Layer 2 scaling and ecosystem growth add to fundamental strength
The Ethereum ecosystem continues to expand with new Layer 2 launches and capital flows into DeFi. Total Value Locked (TVL) across Layer 2s has climbed to $41.2 billion, up 18% month-over-month. Optimism, Base, and Arbitrum lead the charge, with fee revenues rising and bridging activity spiking. Ethereum remains the settlement layer of choice for institutional-grade tokenization platforms, stablecoins, and cross-chain infrastructure. These structural advantages support Ethereum's long-term investment case even as competitors like Solana and Avalanche fight for short-term attention.
Verdict: BUY – Ethereum regains leadership ahead of ETF catalyst and macro inflection
With Ethereum reclaiming technical strength above $3,620, ETF-driven flows accelerating, and whale accumulation supporting price, ETH-USD is positioned for continued upside. Macroeconomic conditions—including a softer dollar, cooling inflation, and rising risk appetite—create a favorable backdrop. The next target sits at $3,820, with $4,050 as a bullish extension. Unless the $3,440 floor breaks, Ethereum remains a buy into Q3, supported by both technicals and fundamentals.
