TL;DR
Ethereum’s price has surged past $4,400 following U.S. inflation data that raised hopes for a Federal Reserve rate cut.
Institutional demand for Ethereum ETFs reached record levels, with BlackRock’s ETHA product leading inflows.
Additionally, public companies are accelerating their Ethereum accumulation, further tightening the supply and supporting the recent strong and sustained bullish momentum.
Ethereum showed strong performance on August 12, climbing above the $4,400 mark and outpacing other top cryptocurrencies. The July U.S. Consumer Price Index (CPI) came in slightly below expectations at 2.7% year-over-year, boosting market optimism about a potential Federal Reserve interest rate cut in September. This macroeconomic environment has made yield-generating assets like staked ETH increasingly attractive to investors. Following the CPI release, Ethereum’s price jumped 3.49% within 24 hours, reaching a market cap of $534.34 billion and daily trading volume of $47.7 billion, reflecting a 12.85% increase in activity.
Institutional Demand Reaches New Heights
The institutional appetite for Ethereum continues to grow rapidly, especially through spot ETFs. On August 12, U.S. Ethereum ETFs saw over $1 billion in net inflows, with BlackRock’s ETHA product alone attracting $639 million in a single day. Overall ETF assets under management for ETH have surged to $19.2 billion, up 58% from the previous month. This surge in institutional investment is significantly absorbing available ETH supply, considering daily post-upgrade issuance is roughly 8,000 ETH.
Corporate Treasury Adoption Accelerates
Corporate interest in Ethereum is also intensifying. Nasdaq-listed BitMine Immersion recently announced plans to raise $20 billion for ETH acquisitions, following earlier purchases such as 180 Life Sciences’ $349 million buy. Public companies now hold close to 5% of Ethereum’s circulating supply, positioning ETH not only as a growth asset but also as a strategic balance sheet hedge. If these acquisition plans materialize, they could remove substantial ETH supply from the market, further supporting upward price pressure and long-term sustainability for investors.
On the technical side, Ethereum’s price has broken above the $4,300 resistance level with solid momentum indicators. The Relative Strength Index (RSI) is near 66, suggesting strong but sustainable buying interest, while the MACD remains positive. Holding above $4,350 could pave the way for Ethereum to test its all-time highs around $4,800 in the near future.
With favorable macroeconomic signals, record institutional inflows, and growing corporate treasury adoption, Ethereum’s bullish trajectory is well-supported and may continue gaining strength in the weeks ahead.
