Ether Prices Reach A Fresh, 6-Month High Near $3,700
Ether prices rallied on Friday, July 18, approaching $3,700 and attaining their highest value since early January.
The world's second-most valuable digital currency by market value reached $3,677.40 during the day, according to Coinbase data from TradingView. At this point, the cryptocurrency was trading at its loftiest price since approximately January 7.
The ether token has been having a very strong month, rallying more than 50% after falling to as little as roughly $2,400 near the start of July, additional Coinbase figures from TradingView reveal.
When asked what fueled these latest gains, analysts who contributed input for this article highlighted several factors, including the recent legislative developments such as the government's decision to approve the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act).
The YouTuber who goes by Wendy O commented on this particular matter, stating that 'Ethereum has been on an absolute tear recently. And I honestly think we can attribute most of it to the GENIUS Act getting approved and then of course, BlackRock filing to allow staking of Ethereum in their iShares Ethereum Trust ETF (ETHA).'
Doug Colkitt, a founding contributor at Fogo, also weighed in, identifying several causal factors.
'Ethereum is benefiting from a mix of structural and speculative drivers," he stated via email.
'The rally is partly fueled by renewed momentum across DeFi and tokenized assets, which continue to build atop Ethereum's infrastructure. On top of that, with Bitcoin dominance stretched, investors are rotating into other majors like ETH that offer strong narratives, robust developer activity, and room to run,' said Colkitt.
'If ETF progress continues, Ethereum could be on the verge of a new capital influx cycle," he concluded.
Mike Cahill, CEO of Douro Labs, also provided his take on ether's latest price rally.
'Ethereum is catching a wave of renewed institutional interest, driven by the broader tailwinds from ETF optimism and a rotation into high-beta assets,' he stated.
'But under the hood, there's also growing traction in the tokenization and L2 space, both of which are Ethereum-native narratives. As institutions begin allocating capital across more than just Bitcoin, Ethereum is naturally the next step, especially given its programmability and network effects across both DeFi and RWAs,' said Cahill.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, offered input on ether's latest upside, citing a range of causal factors.
'Ether's rally toward $3,700 is being fueled by record inflows into spot ETH ETFs, with institutional investors showing renewed conviction,' he stated via email.
'Regulatory clarity from the GENIUS Act is also boosting sentiment, especially as Ethereum plays a central role in the stablecoin ecosystem. Add in whale accumulation and a strong technical breakout, and we're seeing a surge that looks more sustainable than past speculative runs.'
Record Staking Activity
Greg Magadini, director of derivatives for digital asset data provider Amberdata, took a different tack than the other respondents, focusing on staking activity.
'Today we have the highest ETH staking rate ever seen. About 30% of all ETH is now staked," he emphasized via email.
"As Ethereum staking rates increase, the available liquid ETH remaining to trade is reduced (a smaller tradable float). Combine this phenomenon with ETH etf inflows, corporate treasury allocations and a longtime ETH underperformance and we get an explosive 'upside move,'' said Magadini.
'Everyone is trying to buy at the same time!' he stressed.
The crypto derivatives expert also spoke to the impact of regulatory developments, as well as supply-demand dynamics.
'This week's regulatory clarity and prospects for stablecoin adoption are great catalysts to create investment demand for ETH and other EVM based chains (65% of all USDC is on EVM chains), but the real key to explosive upside is the dynamics of increased demand with a simultaneous decrease in tradable supply," said Magadini.
'There's a lot of upside to ETH as the historical range of ETH prices to BTC prices ranges from 2% to 11% which implies ETH could rally from a low of $2,000 to $12,000 given Bitcoin's current value,' he noted.
Rotation Into Altcoins
One analyst in particular focused on investors rotating their capital from bitcoin into altcoins.
When asked what fueled ether's latest gains, Julio Moreno, head of research for CryptoQuant, responded that 'I think that it generally has to do with early signals that investors/traders are rotating part of their capital from Bitcoin to altcoins, as these coins reached extremely undervalued levels compared to Bitcoin.'
'Purchases of ETH from US-based ETFs have outperformed purchases of Bitcoin. You can see this in the ratio of ETH to Bitcoin holdings of these ETFs,' he stated via Telegram.
'The ratio has increased from 0.02 in April to 0.09 today."
The chart below helps illustrate these developments:
ETF: ETH/BTC Total Holdings Ratio
'A similar dynamic can be observed in the relative spot trading volume ratio for these coins, which has been increasing in the same period, indicating higher growth in ETH trading activity than in Bitcoin,' he stated.
The chart below illustrates this situation:
Bitcoin and ether weekly spot trading volume
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