Ethereum, the second-largest cryptocurrency, has shown significant growth over the past week driven by positive investor sentiment and a favorable regulatory environment in the U.S. However, new data indicates a critical role played by Asian traders in this movement.
Market Trends
According to a July 16 Matrixport report, nearly all of Ethereum's recent upside is driven by Asia-based traders. Out of the 20% gain seen over the past month, 17% occurred during Asian trading hours. This data suggests that the price momentum is not coming from the U.S. market despite the positive trends and increased capital inflows.
Institutional Investments
The rise in Ethereum's price is also supported by growing interest from institutional investors. In recent days, several companies have made significant investments in ETH, including iGaming firm SharpLink with a $213 million allocation, followed by Bit Digital and Bitmine, which have collectively added nearly $500 million.
Current State and Outlook
Despite the strong price action, all funds trading on the Asian market have been at a discount to their net asset value, indicating lingering investor caution. As of the time of writing, Ethereum is trading slightly above $3,100, marking a recovery after several months of underperformance.
With nearly 7% gains in the past day alone, ETH continues to outperform Bitcoin and much of the broader market. Investor optimism is building that further climbs may lie ahead for Ethereum.
