Ethereum Spot ETFs Return to Inflows With $14.9M on July 1

Ethereum News

United States spot Ethereum (ETH) exchange-traded funds returned to positive territory on July 1, pulling in $14.895 million in net inflows and snapping a run of redemptions that had pressured demand through late June. BlackRock's ETHA product led the session with the largest single-day intake at $36.639 million, offsetting weaker flows elsewhere. Fund-flow data confirms the reversal, though a single positive day falls short of a durable trend. The renewed appetite arrives as ETH, the second-largest altcoin by market value, tries to stabilise after weeks of selling pressure. Our desk reads the inflow as tentative rather than decisive.

The token changed hands near $1,615 on July 2, up roughly 2.49% over 24 hours, with an intraday band running from $1,564.82 to $1,637.22. Market capitalisation sat near $194.87 billion while daily turnover reached about $10.81 billion. Price action has stayed largely rangebound between $1,580 and $1,650, and traders are watching the $1,700 to $1,800 zone as the level a genuine recovery must clear. A decisive push through that band would mark the first structural break in weeks; a failure to hold $1,500 support would instead reopen downside risk. For now the tape reads as consolidation rather than reversal.

The rebound attempt follows a bruising first half. Ethereum opened the year near $3,000 and slid to about $1,570 by June 30, a decline of roughly 48% in six months. The second quarter alone erased 25.2%, marking the first time ETH has posted three consecutive quarters of negative returns. The drawdown has pushed sentiment firmly into bear-market territory and left the asset far below the all-time high set in the prior cycle. Our reading of the quarterly data shows the weakness was broad rather than event-driven, reflecting fading demand across both spot and derivatives channels through the spring.

Institutional conviction had cooled sharply before this week's turn. Between June 15 and June 30, US spot Ethereum ETFs bled a combined $341 million in net redemptions, a stretch that kept buyers pinned to the $1,500 support region. The retreat prompted at least one major bank to trim expectations: a recent research note cut its twelve-month ETH target to $2,240 from $3,175, arguing that net ETF inflows would stay muted over the coming year without a fresh catalyst. Analysts flagged fund flows as the single most important variable for price, underscoring how tightly ETH now tracks institutional allocation decisions rather than on-chain fundamentals.

Beneath the price, network metrics tell a mixed story. The share of ETH staked has climbed above 33%, signalling that holders continue locking supply despite weak spot performance. Yet the broader value narrative has frayed: the spread of Layer-2 networks has drained fee revenue and burn activity — much of it generated by automated market maker trading — from the mainnet, diluting the deflationary case that once anchored bullish theses. Relative to Bitcoin, ETH has lagged badly: the ETH/BTC ratio fell from 0.0339 in January to 0.0268 by June 30, touching a ten-month low of 0.0258 on June 7 before a modest bounce.

Attention now turns to Glamsterdam, the network upgrade widely viewed as the key second-half catalyst. Developers are finalising the hard fork, which aims to raise per-block transaction capacity and lower fees to win back users and projects lost to competing chains; market participants expect a possible mainnet activation later this year. The upgrade lands amid organisational upheaval at the Ethereum Foundation, which cut roughly 20% of its staff and trimmed its budget by about 40% in a restructuring that co-founder Vitalik Buterin framed as a shift toward long-term, endowment-style funding. Some former insiders warn the pullback could leave gaps in core protocol development.

COINOTAG's proprietary 42-indicator composite S/R scoring engine rates immediate support at $1,615 a firm 79/100, driven by the confluence of a Fibonacci 0.114 retracement, a MACD cross and the Ichimoku cloud bottom, while overhead resistance at $1,641 scores 69/100 on the R1 pivot and the Ichimoku Senkou A span. Derivatives lean long: our aggregate open-interest data shows roughly $5.95 billion outstanding, a mildly positive perpetual funding rate of 0.0057%, and a long/short account ratio of 2.54 — meaning 71.7% of traders sit long, a crowded stance that risks a squeeze. With RSI at 40.62, a bullish MACD signal against an intact downtrend, and a Fear & Greed reading of 19 (Extreme Fear), a reclaim of $1,711 would validate the bullish case; a break below $1,504 would invalidate it.