2 Main Reasons Behind Ethereum’s Surge to $3,600

Ethereum surged 5.18% in the past 24 hours, crossing the $3,600 level and reaching $3,670 before going back to $3,590 at the time of writing.

This sharp upward move reflects a powerful mix of institutional interest, ETF momentum, and strong technical indicators—all of which are positioning Ethereum for a potential continued breakout.

Institutional demand intensifies as ETH ETFs draw billions

Ethereum’s recent rally is being powered by one of the largest capital inflows into spot ETH ETFs since their launch. According to SoSoValue, BlackRock’s iShares Ethereum Trust (ETHA) alone recorded $499 million in inflows on July 16, contributing to over $2.27 billion in cumulative July inflows across ETH ETFs.

In parallel, institutional players are taking major positions in ETH itself. BitMine Immersion revealed it holds over $1 billion worth of ETH, outlining a strategy to acquire up to 5% of Ethereum’s circulating supply. Additionally, Trump-aligned fund WLFI added 861 ETH—worth roughly $3 million—bringing its total holdings to $251 million. This mirrors the Bitcoin accumulation model used by MicroStrategy, but for Ethereum.

Technical breakout supported by bullish momentum

Ethereum’s price momentum is supported by classic technical indicators. The 14-day RSI stands at an overbought level of 83.6, confirming strong buying pressure despite the risk of a short-term cooldown. Meanwhile, the MACD histogram shows a positive divergence at +80.26, which has been building since early July.

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Price-wise, ETH broke through key resistance at $3,521.69 and now targets a Fibonacci extension level at $4,389.98. Short-term support lies above the 7-day SMA ($3,125), while the 30-day EMA at $2,771 provides mid-term bullish confirmation.

Market dominance rises

Ethereum’s market share has also expanded, with ETH dominance climbing from 10.72% to 11.2%—a notable shift amid a broader altcoin rotation. This move reinforces Ethereum’s leadership in the current market phase.

While Ethereum’s current pace may cool due to technical exhaustion, institutional conviction and ETF-driven demand could keep fueling the rally—especially if Bitcoin crosses back above $120,000.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.