#ETH Why have prices not been able to rise?
The current inability for prices to rise is actually similar to the situation when Bitcoin ETFs first came out. Initially, many institutions were buying, but the price remained stagnant. The core logic is that although institutional funds continuously flow in during the early stages, they are primarily used to accumulate positions, resulting in prices often showing sideways movement or slight fluctuations. Only when institutional holdings reach a certain scale will larger amounts of capital be deployed to drive prices up.
The situation with Ether ETFs follows this same pattern. The difference is that, compared to Bitcoin, there was indeed a gap in the value storage of Ether, which limits its attractiveness to traditional large institutions. However, the key improvements brought about by the Prague upgrade provide institutions with a clear reason for allocation. This can be observed from the changes in on-chain data (such as net inflows to exchanges) after the upgrade.
Therefore, the current phase can be understood as the institutions' "silent accumulation period." A relatively subdued price performance is a normal market phenomenon. The subsequent market rally may likely wait until these institutions complete their initial position targets, at which point new incremental capital will become a significant driving force.
