#ETH Ethereum's growth of 6.86% in the last 24 hours to $3,330 is driven by a record influx of funds into ETFs, institutional purchases, and positive technical momentum.
On July 17, $717 million was invested in American spot ETH ETFs — this is a record daily inflow of 67.5%.
SharpLink Gaming has added $68 million in ETH to its treasury reserve, becoming the largest corporate holder.
The technical breakout above the resistance level of $3,300 triggered automatic buys and the closing of short positions.
1. Main Factor: Influx of Funds into ETFs and Institutional Demand
On July 17, $717 million flowed into American spot ETH ETFs, equivalent to purchases 107 times greater than the daily issuance of ETH in the network (Ultra Sound Money). Earlier, on July 14, SharpLink Gaming acquired $68 million in ETH as part of a corporate strategy that has increased their reserves by 321,000 ETH since May. Currently, ETFs hold about 4% of the total ETH circulation, and demand exceeds the rate of new token issuance.
2. Technical Context: Overbought Signals and Liquidation Risks
The RSI-14 indicator at 81.8 indicates overbought conditions, while the MACD histogram at +69.7 confirms a strong bullish trend.
A large short position of $62.4 million at a price of $3,060 could be liquidated upon a breakout at $3,505, which could amplify the price increase.
The price has surpassed the Fibonacci retracement level of $3,114, and if momentum is maintained, it could reach $3,777.
3. Market Dynamics: Altcoin Rotation and Sentiment Shift
The dominance of ETH over BTC has increased by 0.56% over the week, indicating a capital redistribution from Bitcoin to altcoins.
The Fear and Greed Index reached 70 (Greed), with a weekly increase in ETH of 19.92%, significantly outpacing BTC's growth of 1.58%.
The Deribit trading competition has increased ETH options volumes, stimulating leveraged betting.
Conclusion
The Ethereum rally is supported by institutional purchases, a shortage caused by ETFs, and the peculiarities of the derivatives market. Despite signs of short-term overbought conditions, the liquidation level at $3,505 could attract the price upwards. Can ETH maintain the momentum of institutional demand if Bitcoin retests the $120,000 mark?
