Ethereum Surges Past US$3,900: Rally Fueled by ETFs and Institutional Actions

Ethereum (ETH) has reached a significant milestone, breaking through the psychological level of US$3,900 after surging more than 61% over the past 30 days. Data from CoinMarketCap indicates that this rally has been driven by a strong combination of institutional accumulation and strengthening altcoin markets. Analysts believe this surge is not merely a technical correction, but rather reflects a fundamental shift in global crypto market dynamics.

Spot ETF Becomes a Key Catalyst for Price Surge

The price rally in Ethereum has also been bolstered by the influx of institutional capital into ETH spot ETFs in the United States. According to data from SoSoValue, institutional inflows into Ethereum ETFs reached US$1.85 billion over the past week—surpassing those into Bitcoin ETFs. Coin World recorded a daily net inflow peak of US$533 million, marking 17 consecutive days of positive inflows. This trend underscores growing institutional interest in the digital asset.

Whale Accumulation and Tight Supply Drive Prices Higher

In addition to ETF inflows, several large corporations have executed substantial Ethereum acquisitions. Companies such as SharpLink Gaming reportedly purchased 77,210 ETH worth US$295 million on July 28, increasing their total holdings to 438,017 ETH—equivalent to approximately US$1.69 billion. These purchases have intensified the supply shock, contributing to a long-term bullish outlook for Ethereum.

Technical Analysis: Overbought RSI, Strengthening Resistance

From a technical standpoint, Ethereum is trading above US$3.820 and has surpassed the 100-hour Simple Moving Average (SMA), indicating short-term trend strength. The daily Relative Strength Index (RSI) has reached 82.9—an overbought territory that typically precedes a minor correction. Meanwhile, the Bollinger Bands are expanding, signaling heightened volatility. Key resistance levels are observed at US$3,920 and US$3,950. If ETH breaks through these levels consistently, it could target the US$4,000–US$4,100 range. On the downside, the main support zones lie at US$3,800 and US$3,600, acting as critical cushions in the event of a pullback.

Market Sentiment and External Risk Factors

The Fear & Greed Index currently stands at 67—within the "Greed" territory—indicating a prevailing euphoria across altcoin markets. However, analysts continue to caution against external risks such as global monetary policy shifts, volatile crypto regulations, and potential capital flow reversals triggered by macroeconomic conditions.

Is Ethereum Entering a New Phase?

Ethereum’s breakout above US$3,900 marks a pivotal moment. The momentum has been driven by ETF inflows, large-scale institutional accumulation, and supportive technical indicators. Nevertheless, market participants are advised to closely monitor the resistance zone between US$3,920 and US$3,950 and the support levels at US$3,800 and US$3,600 to determine the next directional move. The elevated overbought condition and global volatility could present the next key test for the sustainability of Ethereum’s rally.