Ethereum reverses trend, breaking through a five-month high with multiple favourable information stimulating funds to flow back to ETH.

Bitcoin pullback, Ethereum strongly pumps to 3128 USD After Bitcoin continuously set historical highs, the trend reversed on Tuesday. As of now, the price of Ethereum has risen by 4% to $3128, reaching a nearly five-month high, while Bitcoin has dropped by 1.9%, briefly falling below $117000. Gate data shows that ETH has risen by 20% this week, while BTC prices have pulled back from their highs, indicating a phase shift in the market.

ETH welcomes a key rebound, investor sentiment has clearly warmed up Greg Magadini, the derivatives chief at Amberdata, pointed out that Ethereum is shaking off its weak performance over the past two years. While Bitcoin has risen nearly 300% in the past two years, Ethereum has only risen about 60%, but the current market structure is quickly shifting in favor of ETH. "Ether is gaining traction again, with market participation and capital inflows rising in sync," Magadini stated.

Ethereum ETF and corporate purchases constitute a double benefit The market's expectations for the approval of Ethereum-staking ETFs by the US SEC are increasing. Previously, the SEC stated in May that it does not consider staking activities as securities trading, reducing regulatory risk. This week, sports marketing company Sharplink Gaming has once again purchased Ether, with total holdings exceeding 310,000 ETH. Bitcoin mining company BitMine has also increased its holdings of ETH, with a total market value exceeding $500 million.

Derivative data confirms market recovery, institutional interest continues to rise Magadini pointed out that the nominal value of Ethereum futures open interest has reached a new high in nearly 12 months - the last time it reached this level, the ETH price was close to $4000. "From the perspective of market capital flow and participation level, this is an important signal." he said. The data shows that the willingness to allocate to Ethereum in the derivatives market is rapidly returning, reflecting a high expectation for future rises.

Legislative setbacks have a smaller impact on ETH, investment structures are more resilient Despite the failure of the U.S. House of Representatives to advance votes on three key cryptocurrency bills, which poses a setback to the policy agenda for the entire industry, ETH is less affected. Magadini believes this is due to the current trading structure of Ethereum, where most holders are hedgers or long-term bulls, providing stronger risk-averse capabilities.

Summary: ETH is reshaping its positioning as a strong asset, institutional support may trigger a new market trend With the increase in institutional buying, rising expectations for ETFs, increased activity in futures, and a relatively clear regulatory environment, the mid-term rise logic of ETH is gradually strengthening. As the Bitcoin market temporarily cools down, Ethereum may play a leading role in the next phase.