1.6M ETF Inflows Hint at Surge

Key Insights:

• July’s 1.6M ETH ETF inflows suggest growing institutional interest and potential upward price movement.
• Ethereum’s price trend is aligning with global M2 liquidity, pointing to strong macroeconomic support.
• Key support levels at $2,924 and $2,750 offer a buffer during price pullbacks or corrections.

Ethereum (ETH) market activity is drawing attention after July recorded a strong inflow into ETH spot exchange-traded funds (ETFs). The recent developments in liquidity and institutional buying suggest momentum could be building for a larger move.

Data shared by analytic account Cipher X shows that July recorded $1.6M net inflows into ETH Spot ETFs. This level of demand is more than twice the previous major inflow seen in the December surge of $630K.

According to Cipher X, Ethereum’s price momentum appears to be moving in direct response to the rising ETF inflow levels. However, this pattern has been observed in other assets when institutional buyers enter at scale. These large inflows may increase buying pressure on the asset in the near term.

Ethereum Tracks Global Liquidity Trends

Adding to the bullish sentiment, Merlijn The Trader has observed how Ethereum has been moving in sync with M2 global liquidity. Ethereum appears to be moving in sync with M2 global liquidity, a broad measure of money supply.

Notably, M2 recently hit a new higher high, suggesting more money is entering the system. This trend suggests that macroeconomic factors are also supporting Ethereum’s current position.

Merlijn’s liquidity metrics believe this alignment often supports upward trends in crypto markets. Trader view this as a possible sign of continued asset growth.

Support Levels to Watch and Price Movements

Despite the current upward move, Ethereum`s current price sits well above key support levels. Ali_charts technical analysis shows that $2,924 and $2,750 are strong support zones. These levels could act as safety nets if Ethereum’s price pulls back again. The analyst pointed out that these levels remain key areas to watch.

At the time of writing, Ethereum was trading at $3,539.85. It is up 2.73% over the last 24 hours, with a 24-hour trading volume of over $22 billion. 

This increase follows a period of volatility, where the asset briefly reached $3,600 before a mild pullback. Technical watchers are monitoring whether the asset can sustain momentum above this level or if another consolidation phase will follow.