Ethereum Reclaims $1,940 as ETF Inflows and Staking Growth Strengthen Recovery

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Ethereum (ETH) continued its upward momentum on Tuesday, trading at $1,941.27 as of 12:42 UTC, up 3.58% over the past 24 hours. The cryptocurrency’s market capitalization rose to $234.27 billion, while 24-hour trading volume increased 36.75% to $13.47 billion, reflecting stronger market participation as buyers returned to the market.

The latest move comes as Ethereum benefits from renewed inflows into U.S. spot exchange-traded funds (ETFs), improving technical momentum and continued growth in staking activity. Bitcoin’s broader market strength has also provided support, helping lift major digital assets after easing macroeconomic concerns improved sentiment across risk markets.

At the same time, Bitcoin reclaimed the $66k level, reinforcing the broader cryptocurrency market recovery. The move signaled renewed investor confidence in large-cap digital assets and provided additional momentum for Ethereum’s advance above $1,940.

ETF inflows improve after prolonged weakness

One of the strongest drivers behind Ethereum’s recovery has been the return of positive flows into spot Ethereum ETFs. According to the latest data, U.S. spot Ethereum ETFs recorded $38.09 million in net inflows on July 20, marking a second consecutive day of positive flows. BlackRock’s ETHA accounted for $34.3 million of the total, while Fidelity’s FETH and 21Shares also posted inflows. Total net assets across the ETF category have climbed to approximately $10.29 billion, suggesting investor appetite has improved following an extended period of outflows.

While ETF demand remains below the highs recorded earlier this year, the recent reversal suggests buying interest is gradually returning to Ethereum-linked investment products.

Record staking participation continues to tighten supply

Ethereum’s on-chain fundamentals have strengthened alongside the latest price recovery. Network data indicates that approximately 33.9% of the circulating ETH supply is now staked, representing nearly 40.9 million ETH locked in validators. The increase in staking reduces the amount of ETH readily available for trading, helping limit liquid supply during periods of rising demand.

The liquid staking ecosystem has also continued expanding. Current data shows the sector holds $28.397 billion in total value locked (TVL) and generated approximately $12.44 million in fees alongside $923,612 in protocol revenue during the past seven days.

The continued rise in staking participation has become one of Ethereum’s strongest supply-side indicators, with more tokens being locked rather than remaining available on exchanges.

Technical outlook shifts toward the $2,000 level

Ethereum has now reclaimed the $1,842-$1,868 resistance area, which analysts increasingly view as a new support zone. Attention has shifted to the 100-day exponential moving average near $1,940, where a sustained daily close could strengthen momentum toward the psychological $2,000 level.

However, analysts caution that maintaining support above $1,854-$1,868 remains critical. A break below that range could weaken the current bullish structure and expose ETH to a deeper pullback toward the $1,710 area.

Outlook

Ethereum’s latest advance reflects improving ETF flows, stronger staking participation and a broader recovery across cryptocurrency markets. Although momentum has strengthened in recent sessions, traders remain focused on whether ETH can establish sustained support above $1,940 before attempting a move toward $2,000.

The next major catalyst remains the U.S. Federal Reserve’s July 28-29 policy meeting, which could influence risk appetite across financial markets and determine whether Ethereum’s recovery extends into the final week of July.