On July 27, Ethereum’s price shot up by 4%, outpacing Bitcoin's modest 1.4% gain the same day. This jump grabbed the attention of traders who noticed ETH pulling away from Bitcoin’s rangebound behavior near $65,000. What’s behind this stronger move?
The first factor was persistent ETF inflows. Since July 11, Ethereum-focused ETFs have reversed a long streak of withdrawals, marking steady buying interest. In fact, by July 23, these ETFs saw their fifth straight day of net inflows, signaling real investor appetite rather than a short-lived spike.
Staking dynamics also played a role. Reports showed more investors locking up ETH by staking it, shrinking the supply available for trading. This limitation on sell-side supply makes upward price pressure more likely. Big players are taking note too: BlackRock’s filing in March for an iShares Staked Ethereum Trust ETF points to institutional products that could soon gain regulatory approval.
Then there’s the hype around artificial intelligence finance, or AiFi. Coinbase CEO Brian Armstrong highlighted on social media how AI-driven financial agents need faster payment systems than traditional banks, which can take days. Ethereum’s ecosystem supports instant settlement methods through platforms like Base, USDC stablecoin, and Coinbase’s x402 protocol. This positions Ethereum as a backbone for future AI-powered finance, boosting institutional appeal.
Ethereum’s technical charts backed up these fundamentals, confirming the price rally. As ETH attracts fresh capital and staking locks up supply, its price momentum looks set to challenge Bitcoin’s dominance more fiercely than usual.
This material is informational and not investment advice.
