The recent surge in Ethereum's (ETH) price, often described as a "melt-up," can be attributed to a combination of fundamental, technical, and market-driven factors. Based on available data up to July 17, 2025, here are the key reasons behind ETH’s price increase over the past few weeks:
1. **Institutional Inflows and Spot ETF Adoption**: Significant institutional investment has fueled ETH’s rally. Spot Ethereum exchange-traded funds (ETFs) saw record inflows, with $717 million on July 16, 2025, including $489 million into BlackRock’s iShares Ethereum Trust (ETHA). Over the past week, ETH-based investment products recorded $528 million in net inflows, reflecting strong institutional confidence. The U.S. SEC’s approval of spot Ethereum ETFs in July 2024 has simplified institutional access, boosting demand and price.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)
2. **Corporate Treasury Accumulation**: Companies like SharpLink Gaming have aggressively accumulated ETH, adding 111,609 ETH ($343 million) in eight days, surpassing even the Ethereum Foundation’s reserves. This mirrors Bitcoin’s 2024 ETF-driven rally, with corporate treasuries increasingly viewing ETH as a strategic asset, reducing available supply and driving prices higher.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)
3. **Pectra Upgrade and Network Improvements**: The Pectra upgrade, implemented in May 2025, enhanced Ethereum’s scalability, transaction efficiency, and staking flexibility by increasing validator limits from 32 to 2,048 ETH. These improvements have made the network more attractive for institutional and retail users, supporting long-term price growth. While not an immediate price driver, Pectra strengthens Ethereum’s fundamentals, boosting investor sentiment.[](https://www.cryptonewsz.com/forecast/ethereum-price-prediction/)[](https://www.financemagnates.com/trending/why-is-ethereum-going-up-today-eth-price-hits-3-month-high-after-14-rally/)
4. **Supply Dynamics and Staking**: Over 34 million ETH (28% of total supply) is staked or locked, reducing circulating supply and creating upward price pressure. Exchange reserves dropped to a five-year low of 19.7 million ETH, signaling a supply squeeze as demand rises. This dynamic, coupled with EIP-1559’s fee-burning mechanism, contributes to potential deflationary pressure on ETH.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)
5. **Market Sentiment and Technical Breakout**: The Ethereum Fear and Greed Index reached 65%, indicating bullish sentiment. Technically, ETH broke above key resistance levels like $3,400, supported by strong ETF inflows and futures activity. Analysts note a cup-and-handle pattern, suggesting potential for further gains toward $3,600–$3,750 by late July 2025 if momentum holds.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)[](https://cointelegraph.com/news/why-is-ethereum-eth-price-up-today)
6. **Broader Market Trends**: Ethereum’s rally aligns with a bullish crypto market, partly driven by Bitcoin’s surge to near $118,000. Posts on X highlight ETH’s outperformance, with a 22.9% price increase in the past week compared to the global crypto market’s 7.3% rise. Reduced competition from centralized yield-bearing stablecoins, potentially due to regulatory shifts like the GENIUS Act, has also made ETH-based DeFi more attractive.[](https://www.coingecko.com/en/coins/ethereum)
### Price Context As of July 17, 2025, ETH is trading around $3,373–$3,446, up 22.7–28.94% in the past week and 29.79–35.84% in the past month. This follows a recovery from a low of $2,580 six weeks ago, driven by the factors above.[](https://www.coingecko.com/en/coins/ethereum)[](https://www.tradingview.com/symbols/ETHUSD/)[](https://coincodex.com/crypto/ethereum/)
### Critical Perspective While these factors suggest strong bullish momentum, Ethereum’s high gas fees and competition from Layer 1 alternatives like Solana could temper mass adoption. The market remains volatile, and a failure to sustain above $3,400 could lead to consolidation around $3,200–$3,300. Investors should approach with caution, as short-term corrections are possible despite the bullish outlook.[](https://www.kraken.com/prices/ethereum)
In summary, ETH’s price melt-up stems from institutional buying, corporate accumulation, network upgrades, supply constraints, and positive market sentiment, though volatility and competition warrant careful consideration.
市场最不缺的是机会，
我个人认为更重要的是近期利益集团加入了分餐，LOL
Why ETH price melted up in the past few weeks
The recent surge in Ethereum's (ETH) price, often described as a "melt-up," can be attributed to a combination of fundamental, technical, and market-driven factors. Based on available data up to July 17, 2025, here are the key reasons behind ETH’s price increase over the past few weeks:
1. **Institutional Inflows and Spot ETF Adoption**: Significant institutional investment has fueled ETH’s rally. Spot Ethereum exchange-traded funds (ETFs) saw record inflows, with $717 million on July 16, 2025, including $489 million into BlackRock’s iShares Ethereum Trust (ETHA). Over the past week, ETH-based investment products recorded $528 million in net inflows, reflecting strong institutional confidence. The U.S. SEC’s approval of spot Ethereum ETFs in July 2024 has simplified institutional access, boosting demand and price.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)
2. **Corporate Treasury Accumulation**: Companies like SharpLink Gaming have aggressively accumulated ETH, adding 111,609 ETH ($343 million) in eight days, surpassing even the Ethereum Foundation’s reserves. This mirrors Bitcoin’s 2024 ETF-driven rally, with corporate treasuries increasingly viewing ETH as a strategic asset, reducing available supply and driving prices higher.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)
3. **Pectra Upgrade and Network Improvements**: The Pectra upgrade, implemented in May 2025, enhanced Ethereum’s scalability, transaction efficiency, and staking flexibility by increasing validator limits from 32 to 2,048 ETH. These improvements have made the network more attractive for institutional and retail users, supporting long-term price growth. While not an immediate price driver, Pectra strengthens Ethereum’s fundamentals, boosting investor sentiment.[](https://www.cryptonewsz.com/forecast/ethereum-price-prediction/)[](https://www.financemagnates.com/trending/why-is-ethereum-going-up-today-eth-price-hits-3-month-high-after-14-rally/)
4. **Supply Dynamics and Staking**: Over 34 million ETH (28% of total supply) is staked or locked, reducing circulating supply and creating upward price pressure. Exchange reserves dropped to a five-year low of 19.7 million ETH, signaling a supply squeeze as demand rises. This dynamic, coupled with EIP-1559’s fee-burning mechanism, contributes to potential deflationary pressure on ETH.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)
5. **Market Sentiment and Technical Breakout**: The Ethereum Fear and Greed Index reached 65%, indicating bullish sentiment. Technically, ETH broke above key resistance levels like $3,400, supported by strong ETF inflows and futures activity. Analysts note a cup-and-handle pattern, suggesting potential for further gains toward $3,600–$3,750 by late July 2025 if momentum holds.[](https://coindcx.com/blog/price-predictions/ethereum-price-weekly/)[](https://cointelegraph.com/news/why-is-ethereum-eth-price-up-today)
6. **Broader Market Trends**: Ethereum’s rally aligns with a bullish crypto market, partly driven by Bitcoin’s surge to near $118,000. Posts on X highlight ETH’s outperformance, with a 22.9% price increase in the past week compared to the global crypto market’s 7.3% rise. Reduced competition from centralized yield-bearing stablecoins, potentially due to regulatory shifts like the GENIUS Act, has also made ETH-based DeFi more attractive.[](https://www.coingecko.com/en/coins/ethereum)
### Price Context
As of July 17, 2025, ETH is trading around $3,373–$3,446, up 22.7–28.94% in the past week and 29.79–35.84% in the past month. This follows a recovery from a low of $2,580 six weeks ago, driven by the factors above.[](https://www.coingecko.com/en/coins/ethereum)[](https://www.tradingview.com/symbols/ETHUSD/)[](https://coincodex.com/crypto/ethereum/)
### Critical Perspective
While these factors suggest strong bullish momentum, Ethereum’s high gas fees and competition from Layer 1 alternatives like Solana could temper mass adoption. The market remains volatile, and a failure to sustain above $3,400 could lead to consolidation around $3,200–$3,300. Investors should approach with caution, as short-term corrections are possible despite the bullish outlook.[](https://www.kraken.com/prices/ethereum)
In summary, ETH’s price melt-up stems from institutional buying, corporate accumulation, network upgrades, supply constraints, and positive market sentiment, though volatility and competition warrant careful consideration.