Ethereum (ETH) has recovered to $2,700, and the market has entered a price discovery window.

Ethereum (ETH) recently recovered to the price level of $2,700, marking a significant milestone. The breakthrough came as U.S. cash exchange-traded funds (ETFs) tracked cumulative net inflows into the asset against the backdrop of more than $4.5 billion on July 8 (according to Farside Investors).

Gate.io market shows that ETH is currently priced at $2,772.91, up 6.83% in the past 24 hours. ETH fell below the $2,700 support on June 12 and has been hovering below this price for nearly a month until recently when it achieved a rebound.

Spot ETF: The main driving force behind Ethereum price fluctuations

The rise in Ethereum prices is closely related to the strong growth of spot ETFs, especially as ETF issuers attracted a significant inflow of funds. From July 1 to July 8, the spot Ethereum ETF attracted a total of $303 million in funds, with BlackRock's ETHA ETF leading the way, attracting $171.8 million, followed closely by Fidelity's FETH ETF, which attracted $74.5 million.

It is worth noting that this growth occurred after 25 trading days in the US stock market, when ETF products surpassed $3 billion in net inflows on May 30. These trends indicate a sustained interest from institutional investors in Ethereum, driving up the price of Ether and improving market sentiment.

Changes in the Ethereum derivatives market and position changes

In addition to the growth in capital inflow for Spot ETFs, the market positions for Ethereum derivatives have also seen significant changes. According to data from Coinank, the long-to-short ratio of the mainstream CEX ETH/USDT perpetual contracts dropped to 0.98 at 10:00 UTC on July 9. This is the first time it has fallen below 1 since April 16, 2023, when the long-to-short ratio was 0.94.

The decrease in this long-short ratio indicates that market participants have an increased expectation of price declines or corrections. The increase in open interest and changes in net short positions suggest that new capital is entering the market, rather than existing positions being closed. This shift in sentiment may signal that Ethereum prices have entered a new price discovery phase.

The Four Major Catalysts for Ethereum in Q3 2025

According to the latest report from **CF Benchmarks, the third quarter of 2025 may see four major catalysts affecting the supply and demand dynamics of Ethereum:

1. ETF Capital Inflow: Analysts expect that with the launch of the second wave of platforms, the Spot Ethereum ETF will attract an additional $10 billion in capital inflow.
2. Staking function in ETFs: If the US Spot ETF introduces a staking function, it is expected to attract an additional $5 billion to $7 billion in funds.
3. Adoption of Corporate Treasuries: More corporate treasuries are expected to hold ETH, increasing from 5 to 50, which will significantly boost the demand for Ethereum.
4. Demand for Tokenized Assets and Gas Fees: The increasing demand for Ethereum block space may drive the Gas fee mechanism of Ethereum, improving **Layer 1 yields.

The report indicates that these factors will support the Ethereum market, especially after the high leverage and record participation on CME in the first half of the year.

Ethereum price discovery: entering a critical window period

As the Spot ETF absorbs the supply of Ethereum, while the CEX futures market shows different signals, the market is entering a tense window for price discovery. Traders are now facing the convergence of multiple factors that may accelerate price fluctuations, with long squeezes or short covering potentially occurring based on macroeconomic data and regulatory news.

Nevertheless, due to the structural support still maintained by regulated funds in the spot market, sustained spot demand and net short positions in the derivatives market have created a unique market environment that could lead to significant fluctuations in the price of Ethereum.

Key points for Ethereum traders:

• Ethereum price successfully rebounded to $2,700, after falling below that level for nearly a month.
• The spot Ethereum ETF in the United States saw over $4.5 billion in inflows on July 8.
• The position changes in the Ethereum derivatives market indicate a shift in market sentiment.
• The third quarter of 2025 may become a key period for Ethereum, as catalysts such as ETF fund inflows, staking functionality, and corporate treasury adoption could further drive demand.
• Macroeconomic and regulatory factors may be key determinants of the future price movements of Ethereum.

For Ethereum traders and ETH investors, keeping up with these market dynamics is crucial to better respond to market fluctuations and seize future opportunities.