ETH Rally Fueled by Fresh Inflows, Not BTC Rotation, Says Analysts

Key Insights:

• Ethereum monthly volume hits $214.44 billion in July, reaching a new yearly high.
• Smart money, including public firms and political figures, aggressively accumulate ETH amid market correction.
• Analysts confirm ETH’s rise is driven by new inflows, not capital rotation from Bitcoin.

Ethereum continues to show strength as it records a surge in inflows, pushing July volume to $214.44 billion. Analysts observed that the rally is not fueled by a capital rotation from Bitcoin but by fresh liquidity. Despite minor market pullbacks, investor confidence in Ethereum remains firm.

On-chain data highlights strong buying activity, including a $1.01 million ETH purchase by Donald Trump. BitMine Immersion, a publicly listed company, added 58,224 ETH worth over $224 million to its balance sheet. Additionally, Standard Chartered suggests corporate treasuries could eventually own 10% of all ETH.

ETH now trades near $3,762, showing resilience despite a slight daily dip of 0.92%. Market cap stands at $3.85 trillion, while BTC trades at $117,541 with a 0.39% loss. The Fear and Greed Index remains at 73, indicating sustained market optimism despite a $441 million liquidation event.

Wyckoff Structure Signals Breakout Potential

According to Ted Pillows’ analysis, Ethereum’s current price behavior has entered the “Sign of Strength” phase of the Wyckoff pattern. ETH recently cleared the “Spring” and “Test” phases and is now holding near the resistance zone at $4,085. If this resistance breaks, price action could rapidly escalate toward $5,000.

Supporting this structure, institutional and smart money accumulation during the recent dip highlights conviction among long-term holders. Despite ETF inflows reducing to $65 million, there have been no net outflows since July 2. This reinforces bullish sentiment across the Ethereum market.

With the Federal Reserve’s rate decision due tomorrow, markets await clarity that may affect short-term volatility. Regardless, Ethereum’s rising realized cap and higher lows indicate broader strength. As long as inflows persist, analysts expect Ethereum to sustain momentum and possibly retest all-time highs.