Ethereum Price News: ETF Inflows Remain Positive After Fed’s Rate Cut – ETH to $7K?

Ethereum (ETH) has retreated slightly in the past 7 days but altcoin season has still been inaugurated as the combined value of tokens in this category has reached $1.75 trillion once again.

It has been an important week for the financial markets as the U.S. Federal Reserve cut rates for the first time this year as analysts expected.

A 25bps drop in the federal funds rate triggered a strong single-day rally for most altcoins at a point when capital seems to be rotating to riskier segments of the market.

Economists foresee that the Fed will trim another 25bps of its benchmark rate next month and that means yield-chasing season is about to start. Well-established tokens like ETH and Solana (SOL) have already crossed their key psychological thresholds of $4,000 and $200 respectively.

However, one token has outpaced the rest in the top 5. BNB Coin (BNB) ran through the $1,000 mark for the first time in its history as Binance is favorably positioned to benefit from this bullish cycle.

ETFs Bring in $500M in Net Inflows

Even though ETH has not been the top-performer in these first few innings, its exchange-traded funds (ETFs) have continued to receive strong capital inflows. Data from Farside Investors shows that, until Thursday, investors had poured $509 million into these products.

Ethereum ETF Inflows – Source: Farside Investors

This indicates that buying pressure remains high despite the latest price swings. This is classic behavior of an accumulation phase.

On-chain data support this view as stablecoin reserves on Ethereum have kept climbing and have accumulated a 43% increase since the year started.

The successful implementation of the Pectra upgrade has improved the network’s operational framework by lowering gas fees and increasing the number of blobs (datasets) that can now be included on each ETH block.

Even though other blockchains like Sui or Solana offer much higher transaction processing speeds, Ethereum remains the most decentralized alternative of the three due to its higher number of independent validators.

ETH May Retreat to $3,900 Before the Next Leg Up

We recently shared an Ethereum price prediction that sees a path to $7,500 after a brief retreat to around $3,900.

ETH/USD Daily Chart (Bitstamp) – Source: TradingView

The token has hit a ceiling at $4,800 lately which means that early buyers are cashing out rapidly of their long positions to lock in profits before the next leg up. After the price is cheap enough, we may see them flocking to the market once again.

ETF inflows confirm that there is some buying at these levels but nothing like the volumes we saw a few weeks ago, where weekly inflows exceeded $1 billion. Open interest has been steadily rising in the past few days, meaning that traders could also be silently increasing their exposure to the token.

Either we get a strong pullback to $3900 in the next few days that flushes out excess leverage to raise fresh liquidity or this under-the-radar bullish momentum results in a big price move once retail money catches up.

It only takes a small spark to ignite rallies during bull markets. Another big treasury announcement, official permission to include cryptos on 410(k)s as President Trump intends, and other similar news could start the next rally.

Looking at the chart, a strong rally off these levels could first push ETH to $5,000 and then to $7,500 as the token aims for a retest of its former trend line support from below.