Why is Ethereum up today (July 7)?
Ethereum’s governance debates signal strength, not weakness
Ethereum’s ongoing governance debates and the so-called ‘identity crisis’ are not weaknesses but rather evidence of its open, decentralized development model.
Unlike Bitcoin’s deliberate ‘ossification,’ which focuses on minimizing changes to preserve stability, Ethereum’s adaptable approach allows for continuous improvement and innovation. This flexibility positions Ethereum as a dynamic platform capable of evolving with the crypto space, especially as demand grows for tokenized stocks, stablecoins, and Layer-2 scalability. Bitwise CIO Matt Hougan has reinforced this view, predicting that Ethereum’s Spot ETF inflows will accelerate significantly, particularly in the second half of 2025. The narrative around Ethereum’s versatility and relevance to the broader financial ecosystem continues to attract institutional attention, setting the stage for long-term growth.
Robinhood and ETF inflows highlight growing momentum
Ethereum’s growth is further validated by Robinhood’s decision to build its new blockchain on Arbitrum, an Ethereum Layer-2 network, showcasing the increasing corporate confidence in Ethereum’s scalability solutions. Recent data from June underscores this trend, with Ethereum ETFs attracting $1.17 billion in net inflows even as Bitcoin ETFs saw outflows. This shift in capital signals a rising investor preference for Ethereum’s broader utility and strong fundamentals. The price of ETH surged 2.10% to $2,580 on July 7, and traders are now eyeing the $2,800 resistance level as the next target. Institutional inflows, combined with retail investor enthusiasm, are reinforcing bullish technical setups, providing further support for Ethereum’s continued upward trajectory.
Analyst outlook remains strongly bullish on Ethereum
According to crypto analyst Anton Kharitonov, several converging factors are driving Ethereum’s current momentum. The strong inflow into Ethereum ETFs, surpassing $1.5 billion this year, is a critical indicator of growing institutional demand. Additionally, record-high staking levels—with over 34 million ETH locked—are reducing the circulating supply and enhancing Ethereum’s scarcity appeal.
Kharitonov stated:
"Ethereum is showing strong growth potential. Its fundamental indicators set the stage for a full-fledged altseason."
Bullish technical signals, such as the formation of a ‘Golden Cross’ and a tightening triangle pattern, suggest sustained upward price pressure. Kharitonov also points to the anticipated Pectra upgrade in mid-2025 as a catalyst for further growth, potentially enhancing network performance and user experience. Moreover, the U.S. government’s inclusion of Ethereum in its strategic crypto reserve signals increasing regulatory acceptance, providing yet another layer of support for Ethereum’s bullish outlook.
Recently we wrote that Ethereum recorded its largest monthly accumulation on record in June, as strategic wallets added more than 6 million ETH in a show of growing long-term confidence.
