Benefiting from the surge in ETF fund inflows, Ether today (10th) strongly broke through the $2,800 mark, setting a new high in nearly a month, further laying the groundwork for the market trend in the third quarter.
CoinGecko market data shows that Ether reached a high of $2,816 today, and at the time of writing, it has fallen back to $2,791, with a daily increase of 6.4%.
According to SoSoValue data, on July 9 Eastern Time, the net inflow of Ether spot ETF reached $211 million, with BlackRock's ETHA attracting the most, reaching $159 million. So far, the total net inflow of Ether spot ETFs in the US since inception has reached $4.72 billion.
Derivatives show a rare net short reversal; the long-short ratio hits a two-year low.
Despite the influx of funds into the Ether spot ETF, the derivatives market has shown a rare reverse signal. According to Coinank data, the long-short ratio of Binance's ETH/USDT perpetual contracts fell to 0.98 on July 9, the first time it has dropped below 1 since April 2023.
Meanwhile, the number of open contracts continues to rise, coupled with the long-short ratio turning into a net short position, indicating that new funds are 'entering to short' rather than existing positions being closed.
If interpreted through classic futures theory, when the number of open contracts increases and the price rises simultaneously, it denotes a strengthening trend; however, if the opening volume and price trend diverge, it often indicates a reversal signal, requiring increased vigilance.
4 major bullish catalysts emerge.
According to the latest report from CF Benchmarks, entering the third quarter, Ether will face 4 major potential bullish factors:
1. Ether spot ETF continues to attract funds: Analysts estimate that Ether spot ETFs will attract up to $10 billion in capital inflow this year, and this wave of funds will provide strong tailwinds for Ether, pushing it to catch up with Bitcoin's performance.
2. Ether spot ETF opens staking: If the US Ether ETF opens staking functionality, it is expected to attract an additional $5 billion to $7 billion in capital inflow.
3. Corporate buying support: Analysts estimate that the number of publicly traded companies holding Ether will increase from the current 5 to 50.
4. The demand for tokenized assets in the blockchain space is heating up: Expected to boost the transaction fee burning rate and further strengthen Layer 1's yield.
"Ether broke above $2,800! ETF funds are pouring in, but bears are quietly entering the market?" This article was first published on (Blockkey).
