Ethereum ( $ETH ), the world’s second-largest cryptocurrency, surged nearly 9% overnight, reaching $3,452, its highest price since mid-January 2025. This bullish rally is mainly fueled by record-breaking inflows into spot Ethereum ETFs and growing institutional interest.
Massive ETF Inflows Drive Price Surge
According to SoSoValue, a total of $726.74 million flowed into nine U.S. spot ETH ETFs on July 16 alone, with BlackRock’s ETHA leading the charge, pulling in $499 million. Since July began, these ETFs have seen $2.27 billion in net inflows, setting a new one-month record.
Institutions Are Buying Big
Analysts say Ethereum is increasingly viewed as a serious institutional asset, not just a speculative play. BTC Markets’ Rachel Lucas highlighted that institutions now hold 4% of Ethereum’s total market cap, proving their growing trust in ETH.
Nick Ruck of LVRG Research added that several public companies are now adding ETH as a reserve asset, contributing to long-term price stability and strengthening Ethereum's reputation in global finance.
Interestingly, SharpLink Gaming, backed by ConsenSys, has now become the largest corporate holder of ETH, with 280,600 ETH, overtaking even the Ethereum Foundation.
Altcoins Rally as Bitcoin Dominance Falls
Ethereum’s pump lifted other altcoins too:
🔹XRP jumped 7.8%
🔹Solana (SOL) rose 5.7%
🔹BNB gained 4.2%
Meanwhile, Bitcoin ( $BTC ) only moved up 0.2%, and its market dominance dropped by 2.59% this week, now at 62.62%. Historically, such drops often signal the beginning of an altcoin season, according to Lucas.
$177M in Short Liquidations
The sudden ETH rally triggered $177.67 million in liquidated short positions — the largest part of the $227.74 million in total crypto market liquidations over the last 24 hours. BTC shorts only made up $45.33 million of that.
Ethereum’s daily trading volume also soared 28% to $161 billion, overtaking Bitcoin's $109 billion, and open interest in ETH derivatives increased by 7%.
Regulation News Adds Volatility
Patrick Grun, founder of Perpetuals.com, noted that Ethereum’s price is still highly sensitive to U.S. regulatory developments, which adds volatility. In contrast, Bitcoin appears more stable in response to such news.
Conclusion:
Ethereum's strong price action, institutional adoption, and ETF demand suggest it’s becoming a key part of the modern financial system. With altcoins following and Bitcoin dominance falling, we might just be on the verge of the next altcoin season.
