Ethereum (ETH) broke through the $3,400 level, driven by a strong buying wave from companies holding digital assets, along with increasing interest from both the spot and derivatives markets.

ETH extends its uptrend amid strong interest from both corporations and retail investors.

Ethereum continued to surge strongly in Wednesday's trading session, becoming the bright star in the cryptocurrency market as it led the gains among the Top 20 large-cap cryptocurrencies — only behind DOGE. With a 10% increase in 24 hours, ETH has raised its total weekly gain to over 25%, solidifying its position as the focal point of attention for both retail and institutional investors.

The momentum for this surge largely comes from the buying wave of small publicly-listed companies, as they begin to accumulate Ethereum in their corporate treasuries. In just two months, Nasdaq-listed companies such as SharpLink Gaming (SBET), BitMine (BMNR), Bit Digital (BTBT), BTCS, and GameSquare (GAME) have raised a total of over $1 billion to build Ethereum reserves. According to data from Strategic ETH Reserve, this group of companies has accumulated over 570,000 ETH — a significant number reflecting long-term confidence in the world's second-largest digital asset.

In an interview with CNBC earlier this month, Mr. Thomas Lee — Chairman of BitMine and Chief Investment Officer of Fundstrat — commented that the wave of ETH accumulation stems from positive developments in the regulatory landscape, particularly the stablecoin bill named GENIUS. This bill was passed by the U.S. Senate in June and is awaiting approval from the House of Representatives during the current 'Crypto Week' before being presented to the President.

The heat from ETH treasuries is not only limited to companies but also spreads to both the spot and derivatives markets. Demand from the institutional sector is increasing significantly, evidenced by the net inflow into spot Ethereum ETFs in the U.S. reaching $3.27 billion since May, according to SoSoValue statistics.

The attraction to Ethereum (ETH) is clearly evident through the derivatives market, where open interest (OI) has continuously increased since the beginning of July. OI — representing the total number of outstanding derivative contracts — has added 1.84 million ETH in just the first half of the month, reflecting the growing interest of investors in this coin.

Despite the significant increases in both ETH prices and OI over the past week, the funding rate remains at a relatively modest level compared to previous growth cycles. This indicates that new capital is flowing into the market without being overly reliant on leverage, a sign that the current upward trend is sustainable and healthy.

Notably, on-chain data is also reinforcing the bullish trend. Since the Pectra upgrade was deployed in May, trading volumes on the Ethereum network have remained high, indicating the continuous vibrancy of the network.

The Pectra upgrade brings many significant improvements to Ethereum, especially in the staking mechanism. As a result, the amount of ETH sent to staking has steadily increased over the past month. From June 1 to July 15, investors have net deposited 1.51 million ETH into staking platforms — more than a third of which came from companies holding ETH in their treasury.

The influx into spot ETH ETFs has surged.

Nine spot Ethereum ETFs recorded the most impressive daily net inflow on Wednesday, with a total value of $726.74 million. Leading the pack is BlackRock's ETHA fund, attracting $499 million alone. According to data from SoSoValue, eight out of nine funds recorded inflows, showing strong interest from investors.

As of this July, Ethereum ETFs have netted a total of $2.27 billion — the highest monthly figure since these funds officially launched in July 2024.

"Ethereum is gradually being positioned as a long-term asset for institutions, not just a trading tool," according to Rachael Lucas, an analyst at BTC Markets. She also emphasized: "The fact that these funds currently hold up to 4% of Ether's total market capitalization is clear evidence of a strong wave of institutional money flowing in."

Ethereum price forecast: ETH aims for the $3,600 mark.

In the past 24 hours, the Ethereum futures market recorded a total liquidation value of up to $197.68 million. Of this, $30.01 million came from long positions, while the majority — up to $167.66 million — belonged to short positions, reflecting a strong reversal in market sentiment.

After confirming the daily candle close above the important resistance level — established since February 5 — Ethereum has officially entered a new bullish cycle. Currently, this cryptocurrency is approaching and testing the critical resistance level at $3,470. If it can overcome this barrier, ETH may extend its upward momentum to the next resistance zone around $3,700, and even target a higher goal at $4,000.

Conversely, in a scenario of weakening prices and failing to maintain momentum, the strategic support zone at $2,850 will serve as an important anchor — where the bulls may return to the market to prepare for the next breakout.

Currently, both the Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are deep in the overbought territory, indicating that upward momentum is still prevailing. However, staying in the overbought state for too long also poses the risk of a short-term correction.

The bullish scenario will be invalidated if ETH closes the daily candle below $2,400. In that case, the price may continue to decline deeply to the $2,100 zone.

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