Is Another Ethereum Rally Brewing as Traders Panic?

Ethereum (ETH) has surged by more than 50% in the past month, briefly touching $3,850. The recent FOMO-driven volume spike resulted in a 5.8% ETH-BTC movement.

New data hints at a second bullish wave, even as the leading crypto asset has since retraced its steps and is currently hovering above $3,630.

FOMO Spike

Ethereum’s price ratio against Bitcoin has dropped 5.8% in the past 60 hours. A major FOMO-driven ETH trading volume spike, similar to early May’s pattern, foreshadowed a local top.

If trading and social volumes continue declining for the rest of the week, Santiment believes it would strongly signal a second bullish wave. Such a trend could arise as retail investors’ impatience and profit-taking behavior set the stage for renewed upside momentum.

Meanwhile, Ethereum’s spot trading volumes have surpassed Bitcoin’s recently for the first time in over a year, amidst renewed investor interest as altseason gains momentum. Last week, ETH’s spot trading hit $25.7 billion, exceeding Bitcoin’s $24.4 billion. Zooming out, altcoin spot volumes reached $67 billion on July 17, the highest since March, which indicated capital rotation across the crypto market.

This optimism coincides with a growing appetite among institutional investors seeking direct exposure to ETH through a regulated investment vehicle.

Strong Institutional Demand

One year since US spot Ether ETFs launched, demand for the asset exposure remains strong. Nine ETFs from giants like BlackRock and Fidelity have collectively pulled in $8.65 billion in net inflows, as per SoSoValue data. An unbroken 14-day inflow streak signals confidence in Ethereum’s long-term role within portfolios.

Institutional interest in Ethereum extends beyond ETFs, with numerous public companies now adding ETH to their treasuries as part of a strategic diversification approach. Firms like SharpLink Gaming, BitMine Immersion Technologies, Bit Digital, Coinbase, BTCS, and GameSquare Holdings have publicly disclosed Ethereum holdings.

In fact, data shared by CoinGecko revealed that SharpLink holds 360,807 ETH, while BitMine Immersion has accumulated 300,657 ETH. Next up was Coinbase, which maintains a treasury of 137,300 ETH, followed by Bit Digital and BTCS, which hold 120,306 ETH and 55,788 ETH, respectively. GameSquare also has 10,170 ETH.