Ethereum price hits $5,000! CME futures explode in volume, whales buy heavily and favourable information from regulators is coming in.

Ethereum (ETH) experienced a historic breakthrough in July, with CME futures monthly volume soaring to a new high of $118 billion, a monthly increase of 45%. On-chain data shows that whales and institutional investors are significantly increasing their positions, while the clarification of the regulatory environment in the United States further boosts market sentiment. The price of ETH is approaching the $4,500 mark, just a step away from the all-time high, and the market expects it to potentially break $5,000 by 2025.

CME futures volume and open interest hit new highs

(Source: The Block)

According to data from The Block, the monthly trading volume of CME’s ETH futures in July reached $118 billion, an increase of 82% from June, setting a historical record. At the same time, the size of open interest surged from $2.97 billion in June to $5.21 billion, an increase of 75%.

This trend is not limited to CME; in July, the total trading volume of ETH futures across all global exchanges reached $2.12 trillion, a month-on-month increase of 38%, surpassing the previous high record in May 2021.

Whale and institutional fund inflows drive the pump

In just the past four weeks, funds flowing into Ethereum-related investment products have exceeded $4.17 billion. Several institutions, including Galaxy Digital, FalconX, and BitGo, facilitated large-scale purchases, including one “mysterious institution” that purchased 221,166 ETH in a single week, worth nearly $1 billion.

On-chain data shows that the number of whale addresses holding over 10,000 ETH has risen to a one-year high, while publicly traded companies added 304,000 ETH (approximately $1.3 billion) to their balance sheets last week. BitMine Immersion Technologies accounted for $900 million of the purchases.

Regulatory clarity and strengthening of network fundamentals provide bullish reasons

Recent regulatory developments in the United States have eliminated significant uncertainty in the market:

1. The White House Releases New Digital Asset Framework

2. The Ripple and SEC case comes to a close.

3. The president signed an executive order allowing retirement accounts to allocate crypto assets.

On-chain data also supports the bullish view: the average daily transaction volume of Ethereum reaches 1.74 million, with over 36 million ETH (approximately 30% of the total supply) locked in staking contracts. The ETH/BTC ratio is close to the yearly high, indicating that funds are moving from Bitcoin to Ethereum.

Technical Analysis and Price Prediction

(Source: Trading View)

ETH briefly broke through $4,350 over the weekend, only about 14% away from the historical high of $4,878 set in November 2021. Analysts point out that if it breaks the resistance level of $4,430, it will likely challenge the historical high and enter the price discovery range of $5,000–6,500 by 2025.

Although a pullback may occur in the short term, structural capital inflows and favorable regulations indicate that the bullish trend still has continuity.

Conclusion

Ethereum’s performance in July demonstrated the significant driving force of institutional funds and regulatory clarity on the market. CME futures trading volume and open interest both hit new highs, with whales and listed companies continuously increasing their positions. On-chain data and technical indicators point to higher target prices. If the key resistance of $4,430 can be broken, ETH is expected to return to its historical high and open a new chapter towards $5,000. For more real-time market data and in-depth analysis, please follow the official Gate platform.