Massive ETF inflows fuel Ethereum’s rally

On Tuesday, Ethereum surged by 3%, climbing above $2,400 despite hawkish remarks from Federal Reserve Chair Jerome Powell during his congressional testimony. The rally in ETH was fueled by bullish sentiment following Donald Trump's remarks about Middle East conflict resolution, along with renewed inflows into crypto-backed exchange-traded funds (ETFs), FXStreet reports.

The Fed Chair stated that the central bank is maintaining a wait-and-see approach for now. This cautious stance stems from the need to assess how new tariff measures will impact US inflation. Powell noted that if price growth remains muted through the summer months, it could pave the way for earlier monetary policy easing.

Despite this, Ethereum extended its gains amid easing geopolitical tensions and a $100 million daily inflow into US ETFs. FXStreet reports these funds have now attracted over $4 billion in total investments.

However, Ray Youssef of NoOnes views the current rise in ETH prices as just a short-term reaction to decreased volatility, rather than the start of a sustained bull run. He says the market remains highly sensitive to geopolitical risks.