While the price of Ethereum (ETH) is down 6.9% over the past week, the market backdrop around the asset is turning more constructive.

The ETH price pressed to a new yearly high at $4,788 on August 14 before sliding more than 14% into Tuesday.

By Thursday, it found support near $4,232 and bounced, with Friday trading around $4,282.

On the daily chart, the RSI has rebounded to 56, hinting that bullish momentum is rebuilding as long as support holds.

Notably, buyers are flocking in, derivatives positioning looks less fragile than Bitcoin’s, and fresh institutional flows are arriving from both Wall Street and Asia.

Together, these developments set the stage for a recovery if momentum clears nearby resistance.

JPMorgan notes that Ethereum has begun to outpace Bitcoin thanks to steady ETF demand, corporate adoption and favourable structural tweaks.

Spot ETH ETFs attracted strong July inflows and, unlike Bitcoin, continued to see interest even as August turned choppy.

That flow supports dips and helps absorb supply during risk-off sessions.

The next potential catalyst is staking inside spot ETFs. Markets expect the SEC to allow staking, which would let ETF holders earn yield without running validators.

In-kind creations and redemptions, already approved for these products, further cut friction and reduce forced selling during outflows.

These mechanics make ETH ETFs more efficient and, by extension, make ETH more investable for institutions.

Real-world asset tokenisation is no longer a slide deck. Singapore’s DBS Bank has begun issuing tokenised structured notes directly on the Ethereum public blockchain.

The bank has fractured what was once a $100,000-minimum product into $1,000 units and will distribute through regulated local venues such as ADDX, DigiFT and HydraX.

That change widens access for accredited investors and family offices, a group that has grown sharply in Singapore.

DBS clients executed more than $1 billion in structured-note transactions in the first half of 2025, and volumes jumped over 50% from the first to the second quarter.

Bringing these flows on-chain strengthens Ethereum’s role as a settlement layer for regulated securities.

In Europe, policymakers are accelerating digital euro work after the United States advanced stablecoin legislation.

Crucially, officials are weighing a public blockchain for the project and have discussed Ethereum, alongside Solana, as potential rails.

The European Central Bank has not made a final decision, but the shift in tone is notable.

If the digital euro taps a public chain, Ethereum would gain fresh legitimacy across the bloc’s financial infrastructure.

Even the consideration alone signals growing trust in Ethereum’s security and neutrality, which can influence corporate treasuries, banks and fintechs deciding where to build.

Nearly $5 billion in crypto options expire today ahead of the Federal Reserve’s Jackson Hole speech.

Ethereum’s options open interest is about $943 million, with a put-to-call ratio near 0.83 and a max-pain level around $4,250.

This suggests a more balanced stance than Bitcoin, where put demand dominates.

Technically, Ethereum’s price reclaimed $4,250 but still faces a cluster of hurdles.

On the hourly chart, resistance looms at $4,300 and $4,350, with a heavier cap near $4,385.

A decisive break above $4,385 would open $4,450 and $4,550.

If momentum carries, bulls could attempt a run at the August high near $4,788, with the 2021 all-time high at $4,878 the final hurdle.

The bullish case rests on four pillars: growing ETF demand with the prospect of staking and efficient in-kind flows; live tokenisation from a top-tier bank on Ethereum’s public chain; a European policy pivot that entertains public-chain rails for the digital euro; and options positioning that is less skewed to downside alongside improving momentum signals.

However, a cautious scenario sits on a failure at $4,300 and a close below $4,232.

That would expose $4,180 and $4,120, with deeper support near $4,065 and, in an adverse risk event, the round figure at $4,000.

Even then, medium-term context remains bullish with the ETH price up 16.5% over the past month and 64.9% over the year.

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