Spot Ethereum ETFs post third-largest inflows since debut as ETH enters overbought zone 

Ethereum’s recent price rally appears to be losing momentum just as Spot Ethereum exchange-traded funds record strong inflows.

Spot Ethereum ETFs registered a $533.87 million net inflow on July 22, the third-largest single-day inflow since their launch, according to SoSoValue data. With cumulative inflows now totaling $8.32 billion, institutional demand for Ethereum (ETH) ETFs is clearly on the rise.

Leading the charge was BlackRock’s ETHA, which brought in $426.22 million, and currently oversees over $10 billion in assets. Grayscale’s fund received $72.64 million in new capital, while Fidelity’s FETH added $35.01 million.

The total trading volume for all spot Ethereum ETFs was $1.97 billion. On the other hand, spot Bitcoin (BTC) ETFs reported net outflows of $67.93 million, demonstrating Ethereum’s increasing institutional appeal.

This interest is being driven by Ethereum’s dominant role in decentralized finance and its growing tokenization footprint. Institutions such as Franklin Templeton and BlackRock are now using Ethereum to tokenize real-world assets.

As of July 23, the total value of Ethereum’s tokenized assets exceeded $7 billion, with the network accounting for 54% of the tokenization market share. The asset has become more popular in corporate treasury plans as well. Ethereum is currently being added to the reserves of companies like BitMine Immersion Technologies and SharpLink Gaming.

Still, despite all the strong fundamentals, the price action is cooling off. Ethereum rose 17% in the past week and 64% over the last month, but has now stalled around $3,700. It hit a weekly high near $3,845, but declining trading volume suggests momentum may be slowing. 

Spot trading volume has decreased by 15% in the last day, which frequently indicates a short-term decline in buyer interest. As per Coinglass data, derivatives volume also fell 13% and open interest is down 4%, reflecting a drop in speculative positioning among traders.

On the technical side, Ethereum is trading well above all significant moving averages, suggesting that the long-term trend is still bullish. But according to short-term indicators, Ethereum might be overbought. 

At 81.6, the relative strength index is well above overbought. Indicators like the commodity channel index and Stochastic are also showing “sell” signals, indicating that Ethereum’s rally may be about to pause or undergo some correction. Despite moving more slowly, the moving average convergence divergence is still in bullish territory.

Ethereum might aim for $4,000 next if it can break through $3,850. But before finding more solid support, it might fall toward $3,250 or even $3,100 if it breaks below $3,500.