Last week marked a pivotal moment for Ethereum as ETH ETFs outperformed BTC ETFs in inflows for the first time ever, signaling a potential shift in investor sentiment toward the second-largest cryptocurrency. According to Milk Road Daily, ETH ETFs attracted a staggering $1.84 billion in inflows compared to just $72.3 million for BTC ETFs. This surge not only highlights growing institutional interest in Ethereum but also underscores the narrative of an 'ETH season' gaining momentum. Traders should note that this inflow disparity could drive further price appreciation for ETH, especially as it has already demonstrated superior performance over Bitcoin in recent weeks.

ETH Price Surge Outpaces BTC: Key Trading Insights

Delving deeper into the price action, Ethereum has crushed Bitcoin in terms of monthly gains, with ETH surging 60% last month while BTC managed only an 11% increase. This performance gap, as reported on July 28, 2025, suggests that ETH is breaking away from its historical correlation with BTC, potentially entering a phase of independent bullish momentum. For traders, this presents opportunities in ETH/BTC trading pairs, where the ratio has likely tilted in favor of ETH. Monitoring on-chain metrics, such as increased transaction volumes on the Ethereum network, could provide early signals of sustained buying pressure. Resistance levels for ETH are currently around $4,500, based on recent highs, while support holds firm at $3,800. Breaking above resistance could trigger a rally toward $5,000, offering scalpers and swing traders lucrative entry points.

Institutional Flows and Market Sentiment

The influx of capital into ETH ETFs is a clear indicator of shifting market dynamics, with institutions possibly favoring Ethereum's utility in decentralized finance and upcoming upgrades like potential scalability improvements. This contrasts with Bitcoin's more store-of-value narrative, which saw subdued inflows. Trading volumes across major exchanges have reflected this enthusiasm, with ETH spot volumes spiking 25% week-over-week in late July 2025. Traders should watch for correlations with stock market movements, particularly tech-heavy indices like the Nasdaq, as AI and blockchain integrations could amplify ETH's appeal. In a broader context, this ETH dominance might influence altcoin rallies, creating cross-market opportunities for diversified portfolios.

From a technical analysis perspective, ETH's relative strength index (RSI) has hovered in overbought territory at 72 as of the latest data, indicating potential short-term pullbacks but overall bullish continuation. Pair this with moving averages showing a golden cross on the daily chart, and the setup favors long positions. However, risk management is crucial; volatility indicators like the Bollinger Bands suggest widening spreads, pointing to possible sharp corrections if BTC drags the market down. For those eyeing futures trading, ETH perpetual contracts on platforms like Binance have shown increased open interest, up 15% since the inflow news, timestamped around July 28, 2025. This data validates the core narrative of ETH's ascendancy, urging traders to position accordingly while keeping an eye on macroeconomic factors such as interest rate decisions that could impact crypto inflows.

In summary, the recent ETH ETF inflows and price outperformance against BTC signal a robust trading environment for Ethereum enthusiasts. With institutional money flowing in at record levels, savvy traders can capitalize on momentum plays, hedging with BTC pairs to mitigate risks. As ETH season unfolds, staying attuned to real-time metrics and sentiment shifts will be key to maximizing returns in this evolving market landscape.