Ethereum (ETH) has entered the Overbought zone, with Spot ETF inflow reaching the third largest record since its listing.

Despite the recent pullback in the price of Ethereum, the Spot Ethereum exchange-traded fund (ETF) has seen strong inflows of capital, reflecting the continued increase in institutional demand for Ethereum. This article explores the relationship between the inflows into the Ethereum ETF and the price pullback, as well as how institutions are driving its rise.

Strong inflow into Spot Ethereum ETF

According to SoSoValue data, on July 22, 2025, the Spot Ethereum ETF saw a net inflow of $533.87 million, marking the third-largest single-day inflow since its launch. So far, the cumulative inflow of the Spot Ethereum ETF has reached $8.32 billion, indicating a sustained rise in institutional demand for Ethereum.

Among these inflows, BlackRock's ETHA fund performed the best, with a single-day inflow of $426.22 million, and total assets have surpassed $10 billion. Grayscale's fund added $72.64 million, while Fidelity's FETH fund increased by $35.01 million.

The total trading volume of all Spot Ethereum ETFs is $1.97 billion, whereas the Spot Bitcoin ETFs recorded a net outflow of $6.793 million, further reflecting the increasing attraction of Ethereum among institutions.

Institutional Applications of Ethereum

Ethereum's dominance in decentralized finance (DeFi) and the rising tokenization applications have attracted more institutional attention. Institutions like Franklin Templeton and BlackRock have now started to utilize Ethereum for the tokenization of real-world assets.

As of July 23, the total value of tokenized assets on Ethereum has exceeded $7 billion, with the network's market share in the tokenized market reaching 54%. Additionally, Ethereum has begun to become part of corporate treasury plans, with companies such as BitMine Immersion Technologies and SharpLink Gaming incorporating Ethereum into their reserve assets.

Price Pullback and Market Sentiment

Despite strong fundamental support, Ethereum's price action has experienced a pullback. After rising 17% in the past week and 64% in the past month, the current price has stagnated around $3,700. Although it briefly broke above the weekly high of $3,845, the upward momentum seems to be slowing down as trading volume decreases.

The Spot trading volume has decreased by 15% in the past 24 hours, which usually indicates a short-term decline in buying interest. According to Coinglass data, the derivatives trading volume has also decreased by 13%, and open interest has reduced by 4%, indicating a decrease in speculative positions.

Technical Analysis

On the technical side, Ethereum remains well above all major moving averages, indicating that the long-term trend is still bullish. However, short-term indicators suggest that Ethereum may have entered an overbought territory. The Relative Strength Index (RSI) is at 81.6, clearly in the overbought zone. The Commodity Channel Index (CCI) and Stochastic also show sell signals, implying that Ethereum's rise may pause or experience some pullback.

Nevertheless, the Moving Average Convergence Divergence (MACD) indicator remains in the bullish zone, indicating that Ethereum's upward momentum is still present. If it breaks above $3,850, Ethereum could challenge $4,000. However, if it falls below $3,500, the price may pull back to $3,250 or even $3,100.

Conclusion: Despite the price pullback, institutional demand for Ethereum remains strong, with the inflow of funds into Spot ETFs indicating that the market remains optimistic about its long-term prospects. In the coming months, Ethereum's trend may continue to be influenced by both institutional funds and technical factors.