Key catalysts include over $1.17B in June spot ETF inflows, $888M stablecoin growth on Ethereum in a week, and shrinking exchange reserves.
Large holders accumulated ETH at the fastest pace since 2017, even during price dips.

Ethereum (ETH) price is once again showing strength, gaining 6% in the last 24 hours, moving to $2,600. More importantly, today’s ETH rally is accompanied by a 79% increase in daily trading volumes to $27.58 billion. Furthermore, data from Coinglass shows that ETH futures open interest is up 7.56% to $34.4 billion, highlighting a strong bullish sentiment among traders.

After a major 45% crash in Q1, ETH price has recovered sharply during the second quarter with 36.5 % gains. As Q3 begins, Ethereum is building fresh momentum.  With a 5% gain in just the past week, bullish sentiment appears to be returning, with a strong breakout above $2,544, as mentioned in our previous story.

Crypto market analyst Eric Connor stated that multiple bullish factors are aligning, which could drive ETH even higher. Let’s take a look at four factors that could drive the ETH rally further.

1. Stablecoin Growth Can Provide Required Liquidity Boost For Ethereum Rally

Ethereum remains the foundation of the stablecoin ecosystem. While stablecoin market cap on the network peaked at $251 billion, it still holds a solid $126.31 billion today, up $888.92 million in the past week alone, as reported by Crypto News Flash.

Tether leads with $64.12B, followed by USDC at $38.10B and Ethena’s USDe at $5.09B. The steady demand reflects robust on-chain activity and continued trust in Ethereum’s infrastructure.

2. Rising Ethereum ETF Inflows Show Institutional Interest Remains Strong

Inflows into spot Ethereum ETF have surged significantly over the past month. During the month of June, this ETH investment product saw over $1.17 billion in net inflows recorded in June alone.

The positive trend continues into July, with $54.8 million in inflows on July 1 for BlackRock’s ETHA, and an additional $10 million for Grayscale’s ETHE. This steady demand from traditional finance signals rising institutional confidence in Ethereum’s long-term potential.

Source: Coinglass

As reported by CNF, BlackRock’s iShares Ethereum Trust (ETHA) has emerged as the frontrunner in the U.S. spot Ether ETF market, recording over $5.3 billion in net inflows to date.

3. Ethereum Exchange Reserves Are Dropping

CryptoQuant data shows that ETH supply on centralized exchanges has dropped steadily from 19.51 million at the start of 2025 to 19.03 million currently. This decline signals reduced selling pressure, creating conditions where renewed demand could fuel a faster price breakout.

Source: CryptoQuant

4. ETH Whale Activity on the Rise

Wallets holding between 1,000 and 10,000 ETH accumulated more than 800,000 ETH daily during a week in June, marking the most aggressive buying since 2017. This strong accumulation came despite a 1.62% dip in ETH’s price, signaling growing conviction among large investors.

With ETF inflows rising, stablecoin activity climbing, exchange reserves falling, and whales loading up, Ethereum appears poised for a major breakout. A clean move above the $2,600 resistance could trigger a sharp upward rally

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Filed under: Bitcoin - @ July 3, 2025 9:13 pm