Stocks and Stablecoins Make Ethereum a Strong Narrative for ETF Growth

The Ether

price surged to $2,601 on July 2, capping a breakout that began after 16 hours of tight consolidation, according to CoinDesk Research’s technical analysis model.

The move coincided with growing institutional focus on Ethereum’s emerging role as a platform for tokenized financial products, as well as continued momentum in spot ETF inflows.

On June 30, Robinhood confirmed via X that it is building “Robinhood Chain” on Arbitrum to “power the future of asset ownership.” While the company did not specify a timeline for launch, its decision to build on Ethereum’s leading Layer-2 solution reinforces the network’s position at the center of tokenized finance. The Ethereum Foundation amplified this narrative in a response that read: “Ethereum is for tokenized stocks.”

Building on this theme, Bitwise CIO Matt Hougan offered a bullish forecast on July 2. Responding to the Ethereum Foundation’s post, Hougan said: “Flows into Ethereum ETFs are going to accelerate significantly in H2. The combination of stablecoins & stocks moving over Ethereum is an easy-to-grasp narrative for traditional investors.” He noted that Ethereum ETFs attracted $1.17 billion in net inflows in June alone and suggested the second half of 2025 could see a much larger total if investor interest accelerates.

Analysts say the convergence of stablecoins, tokenized equities, and staking on Ethereum creates a compelling use case for institutional capital.

As staking locks up nearly 30% of ETH’s supply and Layer-2 usage accelerates, Ethereum is increasingly being positioned as the foundational layer for real-world asset tokenization. Market participants are now watching the $2,800 level as the next resistance zone, which, if breached, could reinforce the bullish momentum heading into the second half of the year.

Technical Analysis Highlights

• ETH climbed from $2,413 to $2,570 during the 24-hour window ending July 2 at 18:00 UTC, marking a 6.49% surge.
• Consolidation between $2,380.83 and $2,460.27 lasted 16 hours before a breakout began at 14:00 UTC.
• During the 16:00 hour, ETH gained 2.44% with volume 3.5x the 24-hour average.
• Strong support formed at $2,554.06, with buyers maintaining control despite profit-taking.
• In the final hour (17:40 to 18:39 UTC), ETH rose from $2,560.29 to $2,577.0 — up 0.65% with a 30% volume spike.
• Higher lows and a strong close near session highs indicate continued bullish momentum.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.