Ethereum leads altcoin rebound with 20% monthly gain on $96M ETF inflows

Ethereum rose 20% month-to-date to lead a broad altcoin rebound, as spot ether ETFs drew $96 million in net inflows over three sessions and derivatives positioning turned decisively bullish.

"The combination of sustained ETF inflows and a collapse in long liquidations dominance points to genuine demand rather than a short squeeze," analysts at Glassnode said in a note, citing on-chain data showing long liquidations at just 4% of total forced closures, the lowest level in a year.

ETH traded near $1,928 as of 14:00 UTC, up 5.2% in the past 24 hours and roughly 11% on the week. Futures open interest across all exchanges climbed to $19.8 billion on July 14, the highest since June 3, according to Glassnode. The metric had collapsed to approximately $15.5 billion in late June. Whale trader Machi Big Brother opened a $24.3 million ETH long position at 25x leverage, with liquidation set at $1,833, Arkham Intelligence data shows.

The rally broke above a descending trendline that had capped ETH since its all-time high, with the daily Relative Strength Index exiting its own downtrend. A confirmed daily close above the $2,000 resistance zone on rising volume could open the path toward $2,438, the 0.618 Fibonacci retracement level. On the downside, $1,754 — the 0.786 Fib level that has held four times since early 2023 — serves as critical support.

Volume has declined during the recovery, leaving the breakout short of full confirmation. Spot demand must follow the initial squeeze-driven move for the rally to hold, analysts said. A return of long liquidation dominance above 50% would weaken the momentum signal.

The ETH/BTC ratio showed early signs of a broader Ethereum comeback that could fill the missing demand, with traders rotating from Bitcoin into altcoins as BTC dominance retreated from recent highs. The $96 million in spot ether ETF inflows over three days marks the strongest institutional accumulation since early June, according to data from The Block. The flows suggest institutional buyers are rotating into ETH exposure ahead of a potential breakout above $2,000.

The next major test comes this week as ETH attempts to close above $2,000 on the daily chart for the first time since early June. A failure to hold above the descending trendline would return focus to the $1,754 support zone, where buyers have stepped in four times since early 2023.

This article is for informational purposes only and does not constitute investment advice.