Ethereum Price Surges as ETF Inflows Ignite Bullish Outlook and SEC Pivots

Ethereum ETH/USD is at $2,700, after it vaulted 9% in the last 24 hours, converging on critical resistance at $2,790. The price action comes amid institutional inflows into ETH-based ETFs, which fueled a surge in price and activity. Updates like the regulatory pivot by the Securities and Exchange Commission (SEC), and news around a high-speed settlement tech are other factors impacting ETH price.

ETH has been taking attention from market leader Bitcoin BTC/USD as $800M has flooded into ETH-focused ETFs, reshaping market momentum. It followed a wave of institutional inflows into ETH-based ETFs. It is paired with Ethereum's expanding role in tokenizing real-world assets, like U.S. Treasuries and equities.

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Open interest in ETH perpetuals on Kraken hit a record 30,000 ETH, signaling intensified trading activity. With CPI data due, heightened volatility could be anticipated. Ethereum may retest its all-time high before year-end, bolstered by real asset integration and bullish sentiment in DeFi markets.

Ethereum derivatives surpassed Bitcoin's with $110B in daily volume as Ripple's XRP/USD XRP Ledger announced an EVM-compatible sidechain launching in Q2, expanding Ethereum’s smart contract influence and potential developer migration.

Also contributing to Ethereum's surge was SEC Chair Paul Atkins' announcement of a forthcoming "innovation exemption" for DeFi projects. The policy shift sparked a sharp rise in Ethereum-based governance tokens like Uniswap UNI/USD, Aave AAVE/USD, and Sky USDS/USD, with volumes hitting unusual highs.

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Ethereum Foundation's recent stake of 50,000 RAIL signals a major push into onchain privacy, aligning with its new "Defipunk" initiative. Vitalik Buterin's $2.6 million transfer using RAILGUN further validates the pivot toward zero-knowledge DeFi. Ethereum's ecosystem continues expanding with projects like Fraxtal blending AI and DeFi, reinforcing ETH's role as the settlement layer for next-gen financial infrastructure.

Meanwhile, Ethereum is building momentum around TOOL, a groundbreaking middleware promising one-second transaction execution on Ethereum mainnet without rollups. Backed by $6 million in funding and supported by TEEs and sealed-bid auctions, TOOL introduces a decentralized, censorship-resistant way to handle private order flow. It targets Flashbots' MEV-boost and may surpass Ethereum's PBS.

DeFi giant Aave has officially debuted on Sony-backed Soneium, an Ethereum Layer 2 blockchain, aiming for mainstream adoption in Japan and beyond. Aave has anchored itself within Soneium's 7-million user lattice, a dense hub powering DeFi titans like Lido and Uniswap v4.

Aave will join upcoming liquidity campaigns with Astar and explore real-world integrations for its GHO GHO/USD stablecoin. Aave founder, Stani Kulechov, underscored Sony's institutional gravitas and transnational footprint as pivotal catalysts in demystifying DeFi for the quotidian user.

The Directional Movement Index reflects intensifying bullish velocity for ETH, with +DI spiking to 44.07 and ADX nearing 25. It is an archetypal precursor to directional validation. RSI spiked to 76.82, which is a monthly peak, signaling overbought strain. A breach of $2,790 could catapult ETH toward $3,442. But a dip below $2,462 could send it tumbling to $1,938.

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