BlackRock recently bought $314.9 million worth of Ethereum over five days. This shows growing confidence in Ethereum’s future. Spot Ethereum ETFs saw net inflows of $443.91 million, indicating increased interest from institutional investors in cryptocurrencies. Ethereum’s price had faced pressure recently, but it began to recover on Tuesday. BlackRock’s purchase of Ethereum, along with strong flows into spot ETFs, marks a significant change in market sentiment. Total net inflows for spot Ethereum ETFs in August 2025 have now surpassed $1.2 billion. This level of buying helps support the price, suggesting that dips may be shorter and bought up faster in the upcoming weeks. Implied volatility is picking up as traders anticipate bigger price movements. The ETH DVOL index, which fell to a 90-day low of 48 last week, has risen to 55, meaning options are becoming pricier. Traders may want to consider strategies like buying call spreads to manage risk while still capturing potential gains. In the options market, there’s a noticeable bullish trend. Open interest for September 2025 month-end calls has surged around the $5,500 and $6,000 strike prices. The 25-delta skew has turned positive for the first time since June 2025, showing that demand for upside calls is much higher than for downside puts. This indicates traders are getting ready for a move towards previous all-time highs. The futures market reflects this confidence as well. The CME futures curve for ETH has steepened, with the December 2025 contract trading at a $150 premium over the spot price, up from $60 at the beginning of the month. This setup encourages holding long positions and suggests that leveraged traders expect this rally to continue. This trend of institutional inflows is similar to what we saw after the approval of spot Bitcoin ETFs in early 2024. That event triggered a multi-month rally driven by significant buying instead of retail speculation. History suggests that these Ethereum inflows could lead to a similar sustained uptrend through the end of the year.

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