ETH Price Rally Fueled by Institutional Demand and DeFi Boom

ETH Price – Why Ether’s Trading Volume Surged Past $110 Billion in 24 Hours

ETH Price – The volume of ether (ETH) derivatives has soared by 38% in the last 24 hours, reaching over $110 billion according to Coinglass data. This surge outpaced bitcoin derivatives, which recorded $84.72 billion in volume during the same period. The rise in trading activity coincides with strong inflows into spot ETH exchange-traded funds (ETFs) and increased engagement across the decentralized finance (DeFi) ecosystem.

ETH Price Hits Highest Level Since February

Ethereum’s price also experienced a notable increase, climbing 4% to trade at $2,790 as of late Tuesday. This marks ETH’s highest price point since February, driven by a combination of institutional interest and growing real-world utility. Rachael Lucas, analyst at BTC Markets, emphasized that this momentum reflects “structural growth, institutional validation, and real utility,” signaling ETH’s expanding role in the digital asset economy beyond its position as the second-largest cryptocurrency.

Institutional Inflows and DeFi Growth Drive Demand

Sustained positive net inflows into spot ETH ETFs in the U.S. have been a significant catalyst, with funds experiencing 16 consecutive days of positive inflows totaling nearly $890 million. This institutional support coincides with renewed enthusiasm in Ethereum-led sectors like DeFi and NFTs. According to DeFi Llama, the total value locked (TVL) in DeFi protocols has surged by 32%, reaching $118.8 billion since April 10. Meanwhile, NFT marketplace OpenSea recently recorded its highest monthly active users since 2023 following the launch of its revamped platform, OS2.

Regulatory Endorsements and Network Upgrades Bolster Confidence

Positive sentiments from the U.S. Securities and Exchange Commission (SEC), particularly Chairman Paul Atkins’ comments affirming the right to self-custody in digital assets, have further strengthened market confidence. Analysts also credit the Ethereum network’s Pectra upgrade earlier this year for improving scalability and cost-efficiency, vital factors supporting developer activity and ecosystem growth.

Price Outlook and Market Sentiment

Short-term outlook remains bullish, with key resistance noted at $3,600 and support around $2,800. Analyst Lucas highlights potential catalysts such as the approval of staking-enabled ETFs, which could propel ETH’s price to the $5,500–$6,700 range by year-end. Long-term projections suggest a constructive trajectory fueled by the deflationary supply mechanism (EIP-1559), increasing Layer 2 adoption, and ongoing protocol enhancements. If these trends continue, ETH could reach between $10,000 and $20,000 by 2030.

However, near-term regulatory uncertainties, including delayed SEC decisions on staking ETFs, could introduce volatility, cautions Dominick John of Kronos Research.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.