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Ethereum's (ETH) prolonged decline against Bitcoin (BTC) appears to have finally come to an end. The second-largest cryptocurrency has assembled a powerful combination of a strong technical signal, renewed inflows of institutional capital into U.S. funds and overwhelming dominance in the tokenization sector.
Together, these factors point to a fundamental shift in market sentiment about Ethereum right now, in the middle of summer 2026.
Charts, ETFs and real business: Why Ether's trend is changing
The first reason is a clear technical reversal. Analyst Aksel Kibar, CMT, identified an important shift in the ETH/BTC pair, which successfully rebounded from a local bottom of 0.0269 and climbed to 0.02918.
On the dollar chart, Kibar also points to ETH/USD breaking above a horizontal neckline after forming a medium-term base. Ethereum firmly rebounded from lows near $1,510, reached the current level of $1,880 and turned $1,842 into key support.
From the perspective of classical technical analysis, if the price remains above this critical line, the next confirmed target of the bullish pattern stands at $2,163.
The second reason lies behind the charts: Ethereum's near-total dominance in the real-world asset sector. Fresh data from analytics platform RWA.xyz shows that the value of traditional capital tokenized on Ethereum has reached an impressive $17.1 billion, completely overshadowing the combined figures of its closest competitors, including Solana and BNB Chain.
BlackRock's flagship BUIDL fund and the smart contracts of another 1,373 major issuers are deployed on the network. For ETH, this represents a direct long-term growth driver. Billions of dollars in transactions conducted by traditional businesses require fees to be paid in the network's native cryptocurrency, generating continuous organic demand for the asset from institutional participants.
The third reason is the return of capital from traditional funds. According to data from SoSoValue, current demand has fully absorbed the capital outflows recorded in May and June.
The week ending July 24 brought Ethereum ETFs net inflows of $103.90 million, marking the third consecutive week of positive momentum. As a result, the funds' net assets under management reached $10.17 billion, while weekly trading volume remained stable at $2.78 billion.
All three triggers have emerged at the same time, giving Ethereum a strong chance to step out of Bitcoin's months-long shadow during the current summer lull.
Dan Burgin
U.Today Editorial Team
