Ether.fi [ETHFI] has continued with its price recovery. After successfully holding $0.4 support, the altcoin jumped to a local high of $0.44, effectively clearing 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 surged 107%, while market cap climbed 10%, reflecting market participation and capital flows.
What’s behind Ether.fi’s rally?
ETHFI’s relative strength was driven by an increased user base and expansion into RWA tokenization. Nearly two weeks ago, Ether.fi allocated $100 million into a new Plume RWA Vault, providing ETHFI users access to institutional-grade RWA yield.
The product introduced RWA exposure to a simple, non-custodial on-chain vault. After Ether.fi announced the investment. ETHFI surged from $0.37 to $0.44. This was later boosted by the integration with the Binance wallet. A week ago, the Binance wallet added a Plume RWA yield vault on nBASIS.
In doing so, ETHFI greatly benefited from the expanded market reach. The altcoin rose from $0.38 to $0.44 between July 8 and 12, before retracing.
ETHFI market demand remains steady
In addition to the growing reach of the RWA market, demand for the altcoin has remained steady across the market.
On the derivatives side, the altcoin’s Open Interest (OI) climbed 19% to $74.47 million as of writing. At the same time, the Derivatives Volume surged 93% to $110 million.
With OI and volume rising in tandem, it showed increased speculative activity as traders opened new positions, either shorts or longs. 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, the Spot Netflow was -$82k, a significant drop from -$264k. With the Netflow holding negative, it indicated that buyers are relatively stronger on the spot.
These prevailing market conditions have historically preceded stronger price performance, especially when sustained.
Can ETHFI’s upside hold?
Currently, Ether.fi’s upside momentum remains relatively strong, largely driven by established market demand. At the time of writing, the altcoin Momentum Shift Indicator remained positive and was stabilizing at 0.025.
With this indicator on an upward trajectory, the prevailing trend is particularly strong. At the same time, the MACD has also remained on a rising trend for the past two weeks, further confirming the trend’s strength.
Taken together, these two indicators point towards the extension of the trend. Therefore, if demand holds, Ether.fi will close above $0.45 and eye $0.5. However, if the altcoin fails to hold $0.44, it will likely drop below $0.4, with $0.37 as the critical support.
Final Summary
- Ether.fi surged 11%, successfully held $0.4, and jumped to $0.44 amid strong market demand.
- ETHFI has shown relative strength, as a $100 million investment into RWA seems to be finally paying off.
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