Ether.fi (ETHFI) continued its price rally. After successfully holding $0.4 support, the altcoin surged to a local high of $0.44, erasing all recent losses.
At press time, Ether.fi was trading at around $0.43 after rising 11.34% on the daily charts. At the same time, trading volume jumped 107%, while market capitalization climbed 10%, reflecting market participation and capital flows.
What’s Behind Ether.fi’s Rally?
ETHFI’s relative strength is due to the increasing user base and expansion of RWA tokenization. Nearly two weeks ago, Ether.fi allocated $100 million in a new Plume RWA Vault, giving ETHFI users access to institutional-grade RWA yield.
The product introduced RWA exposure to a simple, non-custodial chain vault. After Ether.fi announced the investment. ETHFI rose from $0.37 to $0.44. This was later strengthened by integration with the Binance wallet. A week ago, Binance wallet added a Plume RWA yield vault on nBASIS.
In doing so, ETHFI has greatly benefited from expanding its market reach. The altcoin rose from $0.38 to $0.44 between July 8 and 12, before retracing.
ETHFI market demand remains stable
Aside from the growing reach of the RWA market, demand for the altcoin has remained stable across the market.
On the derivatives side, the altcoin’s Open Interest (OI) climbed 19% to $74.47 million at the time of writing. At the same time, derivatives volume jumped 93% to $110 million.
With the simultaneous increase in OI and volume, speculative activity increased as traders opened new positions, both short and long. The same demand was observed on the spot side. According to Coinglass data, the altcoin’s Spot Netflow has remained positive for two consecutive days.
Notably, Spot Netflow was -$82,000, a significant decrease from -$264,000. The Netflow remaining negative, this indicates that buyers are relatively stronger locally.
These prevailing market conditions have historically preceded a price increase, especially when it is sustained.
Can ETHFI’s rise hold?
Currently, Ether.fi’s bullish momentum remains relatively strong, largely driven by established market demand. At the time of writing, the altcoin Momentum Shift indicator remained positive and stabilized at 0.025.
With this indicator on an upward trajectory, the dominant trend is particularly strong. At the same time, the MACD also remained on an uptrend over the past two weeks, further confirming the strength of the trend.
Taken together, these two indicators point to an extension of the trend. Therefore, if demand continues, Ether.fi will close above $0.45 and aim for $0.5. However, if the altcoin fails to hold $0.44, it will likely fall below $0.4, with $0.37 as critical support.
Final summary
- Ether.fi surged 11%, successfully held $0.4 and surged to $0.44 amid strong market demand.
- ETHFI has shown relative strength, as a $100 million investment in RWA finally appears to be paying off.
