Money flowing into the Ethereum ETF reached $703 million – is ETH about to hit the $4,000 mark?

Ethereum (ETH) has recently become the "darling" of Wall Street, although most of the market's attention is still focused on Bitcoin. In fact, since mid-May, Ethereum spot ETF funds in America have recorded continuous net inflows for 9 consecutive weeks.

Source: Soso ValueBut that's not all — the inflow of funds into Ethereum ETFs on July 10th reached $383.1 million, bringing the total demand for the week to $703 million (excluding the data from day 6 ).

The total net cash flow this week could even match the levels seen at the end of 2024 — a time that helped ETH price reach the $4,000 mark.

Tokenization Drives ETH Price

In a recent report as Bitcoin Magazine reported, Fidelity compared ETH to the currency of a developing economy, instead of viewing it as a technology stock as Wall Street analysts had previously stated. This asset management company argued that ETH serves as "fuel" for DeFi, can be used as collateral, and provides passive income through staking.

In addition to the optimistic report above, stories surrounding stablecoins and tokenization are also developing strongly. Bitwise recently predicted that the tokenized asset market could grow 4,000 times in the coming years — and this makes ETH one of the main investment channels to access the market.

Similarly, stablecoins — a field that is receiving significant attention from Wall Street — are also expected to drive ETH prices. For example, Tom Lee from Fundstrat is heavily betting on the explosive wave of stablecoins — a factor that is currently reshaping the entire treasury strategy of Ethereum at BitMine Immersion Technologies, a company previously known for its investment focus on Bitcoin.

The reason is very simple: Ethereum holds 50% of the stablecoin market share and accounts for more than 75% of the value of tokenized treasury assets currently.

Source: RWAAt that time, with BTC at its historical peak, analyst Ken Teng (also known by the nickname Chicken Genius)believes that the price of ETH may soon reach the $4,000 mark.

"We will continue this trend until the end of July. Bitcoin hits a new ATH once again, ETH approaches $4,000 — the capital rotation between assets will occur during that process."

The developments regarding selling pressure in the market seem to support Teng's predictions. According to the inflow index into the exchange, the amount of coins transferred to the exchange for sale has sharply decreased in July — coinciding with the price increase of ETH from 2,200 to 3,000 dollars.

Source: CryptoQuantIf the low selling pressure trend continues, the bulls may take the opportunity to push the price higher. However, currently, the price of ETH may be at a critical juncture around the $3,000 mark – an area that was previously a strong support zone in 2024 but was breached earlier this year.

Regaining this level as a support zone will strengthen the market structure in an upward trend. According to the Supertrend indicator, the current price is still considered a potential buying area.

However, it should also be noted that the daily RSI indicator has entered the overbought zone on the chart. This indicates that the current price increase may stall if the price behavior in May is repeated.

ETH price chart | Source: TradingView Đình Đình