Ethereum (ETH) surged past $4,300 amid unprecedented institutional buying, with spot ETFs recording a single-day inflow of $461 million—outpacing Bitcoin's $404 million haul. BlackRock led the charge with $250 million in ETH purchases, followed by Fidelity ($130 million) and Grayscale ($60 million), signaling robust institutional confidence in ETH's growth potential.
This buying wave fueled a 25% weekly price gain for Ethereum, significantly exceeding Bitcoin's 5.4% rise. Glassnode data revealed heightened activity from first-time buyers and conviction investors, who increased their cost basis despite elevated prices, indicating deeper market commitment. Derivatives markets mirrored the optimism, with futures open interest climbing to $51.61 billion—near yearly highs—suggesting sustained demand rather than speculative froth.
Technical indicators supported the rally: ETH traded above its 9-day and 21-day exponential moving averages, with RSI at 69.8 (just below overbought) and positive MACD readings. Federal Reserve Vice Chair Michelle Bowman's comments advocating "three rate cuts" provided additional tailwinds, briefly pushing ETH above $4,300. Although BlackRock's Ethereum ETF saw a temporary $375 million outflow (a 3% single-day dip), strategic buys by U.S. firms like Bitmine—now holding over 830,000 ETH—accelerated recovery.
Market sentiment was further buoyed by Tom Lee of Fundstrat declaring ETH "the most important trade in the next 10 years" and Wincent market maker Paul Howard noting institutional price floors rising from $2,500 to $3,200. Ethereum now sits $700 below its $4,891 all-time high, with policy clarity and historical parallels to 2021 rallies hinting at continued momentum.