Ethereum soars 32.5% in August as ETF inflows hit $1.85 billion

Spot Ethereum ETFs drive inflows

Robust capital inflows into US-based spot Ethereum exchange-traded funds were a central force behind Ethereum’s rally. According to blockchain analytics firm SoSoValue, these ETFs registered $1.85 billion in net new capital last month. This marked their largest month of inflows in over a year, including an unbroken 11-session inflow streak and only four sessions of outflows during August.

SoSoValue reported $1.85 billion in net capital flowed into spot Ethereum ETFs in August, the sector’s best showing in more than 12 months.

Spot ETFs allow investors to gain exposure to Ethereum without directly holding the asset, and such products have become increasingly popular with institutional investors.

Mini dictionary: Spot Ethereum ETF, an exchange-traded fund that tracks the price of Ethereum and settles transactions in real-time without using futures contracts.

Large holders accumulate as retail investors exit

A noticeable shift in Ethereum’s ownership structure unfolded during August. On-chain data revealed that large wallets holding between 10,000 and 100,000 ETH accumulated 430,000 ETH, with most of these purchases happening late in the month. By contrast, smaller retail addresses reduced their ETH positions, suggesting heightened institutional accumulation at the expense of individual investors.

Ethereum staking activity also accelerated. Staking contracts received 1.4 million ETH during August, the largest monthly increase since February 2024. Increasing the amount of ETH locked in staking contracts reduces the circulating supply available for trading.

Market observer BATMAN described recent price gains as a reversal to bullish momentum after a year of downward pressure and pointed to the 50-day moving average now acting as support for ETH.

Resistance at $2,550 holds firm

While the August surge propelled ETH near the $2,550 mark, it has struggled to achieve a decisive breakout above this level. Moves to clear the resistance have repeatedly faltered, prompting some analysts to anticipate short-term volatility. On-chain specialist Ted Pillows noted that leveraged long positions are accumulating around current prices, which could increase liquidation risk if the asset faces another rejection. Open interest has risen to about 4.973 million, alongside higher funding rates.

Traders are monitoring $2,250–$2,300 as the next major support in the event of a pullback, while a clear daily close above $2,550 could open the path to $2,650–$2,700.

Corporate accumulation and longer-term targets

Institutional demand has remained robust. BitMine, a large digital asset investment firm, acquired 53,501 ETH last week. This increased its reserves to approximately 5.9 million ETH, affirming continued corporate interest even as prices consolidate.

Crypto analyst DonAlt has commented that the range between current prices and $4,000–$4,100 holds relatively light resistance, making it a key long-term target if bullish momentum is sustained.

In the immediate term, ETH continues to trade at $2,463, with the $2,550 level remaining the most significant obstacle for further upside.