TLDR
- Fidelity now views Ethereum (ETH) as a store of value, comparing it to currencies of emerging economies
- ETH briefly flipped Bitcoin in trading volume and speculative interest, with open interest jumping 7%
- Institutional demand is rising with CME Ether futures open interest reaching $3.27 billion, highest since February
- ETH closed above $2,700 for the first time in four weeks, with analysts eyeing $3,000 target
- Spot ETH ETFs have seen positive inflows for eight consecutive weeks, accumulating over 61,000 ETH
Ethereum has gained fresh momentum after major asset manager Fidelity released a report positioning ETH as a store of value. The development comes as ETH price broke above $2,700 for the first time in four weeks.
In its latest report, Fidelity stated that Ether serves as both a medium of exchange and a store of value. The firm compared ETH to currencies of emerging economies, noting that blockchains have embedded currencies similar to sovereign nations.
“Ether is used to pay for any transaction on the Ethereum blockchain, regardless of the type of transaction,” Fidelity wrote. The asset manager highlighted that ETH is the most actively traded asset on exchanges and acts as the primary asset to borrow against.
The report provides relief for ETH supporters after the cryptocurrency suffered a market disconnect from Bitcoin in 2024. ETH dropped nearly 70% against BTC during this period and lagged behind other altcoins like Solana.
Following the Fidelity update, ETH sentiment climbed to greed levels and pumped 2.8% to $2,600. The positive sentiment triggered ETH to flip Bitcoin in daily trading volume and speculative interest.
ETH’s open interest rate jumped 7% compared to Bitcoin’s -0.18% decline. The derivatives trading volume surged to $59 billion, about $3 billion more than Bitcoin.
Institutional Demand Drives Price Action
Institutional interest in Ethereum is growing across multiple metrics. Chicago Mercantile Exchange Ether futures open interest climbed to $3.27 billion, reaching its highest level since February 2.
This surge reflects increased institutional positioning as professional investors seek ETH exposure during the current price momentum. The rising futures interest aligns with consistent capital flows into spot ETH exchange-traded funds.
Net inflows into spot ETH ETFs have remained positive for eight consecutive weeks. During this period, over 61,000 ETH has been accumulated through these investment vehicles.
Technical Outlook Points to $3,000 Target
ETH closed above $2,700 on Wednesday for the first time in four weeks. The price maintained strong momentum into Thursday, setting up a potential rally toward the $3,000 psychological level.
Bulls are attempting to push the price above the resistance zone between $2,650 and $2,750. This level has acted as a ceiling since May, repeatedly rejecting bullish breakouts.
A successful break above this range would open the path toward $3,000. The chart shows an area of low volume between $3,000 and $3,300, which could lead to accelerated price movement.
The daily relative strength index reads above 60, indicating sustained buying pressure. ETH is trading above its 50, 100, and 200-day exponential moving averages.
Data analytics platform Swissblock noted that the current scenario for Ether against Bitcoin is more bullish than Q2. This potentially signals the start of an altseason as Bitcoin dominance declines.
The analysis points to ETH inflows gaining momentum while Bitcoin shows fading strength. Swissblock emphasized a critical 72-hour window, suggesting that if ETH holds strong, it could mark the true onset of altseason.
Market skew for end-quarter 3 was bullish with a Put/Call Ratio of 0.44. This indicates a premium for calls over puts, with most bullish targets set at $2,800 and $3,200.
However, risks remain present in the current market structure. Open interest in ETH futures surged by over 10.6% on Tuesday, signaling rising speculation.
Historically, 11 of the last 13 such leverage spikes have been followed by price pullbacks. A retrace to liquidity lows around $2,375 remains possible if ETH fails to clear $2,750 with conviction.
The maximum pain level sits around $2,000, where options contracts would expire worthless. ETH could still extend its sideways consolidation phase if it fails to break above current resistance levels.
At press time, ETH’s derivatives trading volume reached $59 billion, surpassing Bitcoin by $3 billion as institutional and retail interest continues to build.
