The price of Ethereum (ETH) saw a significant increase, reaching $3,452, supported by record inflows into crypto ETFs.
Ethereum Price Rise
According to CoinGecko, Ethereum price rose by 8.9% overnight, achieving the highest level since mid-January. A key factor driving this rally was record inflows into spot Ethereum ETFs totaling $726.74 million as of July 16.
Institutional Investments in Ethereum
BTC Markets analyst Rachel Lucas stated that Ethereum is increasingly viewed as a long-term institutional asset. Currently, funds own 4% of the altcoin's total capitalization. Notably, more public companies are investing in Ethereum as a reserve asset, contributing to market stability.
Liquidations and Market Impact
The rise in Ethereum's price triggered forced liquidations of short positions totaling $177.67 million, which accounted for most liquidations in the crypto market. Simultaneously, Ethereum's trading volume grew by 28%, surpassing Bitcoin's trading volume.
Thus, amid high ETF inflows and increasing institutional investments, Ethereum is showing robust growth, indicating potential stability as an asset.