Ethereum’s Bullish Surge: Asia-Driven Rally and Institutional Demand Signal Altseason
Ethereum has continued its impressive rally, surpassing $3,800 with a 3% daily gain and a staggering 55% monthly increase, even as network gas fees remain subdued. The momentum is being significantly driven by Asian trading sessions, with Matrixport data highlighting the region's outsized influence on weekend price action. Institutional demand is also playing a pivotal role, as ETH perpetual open interest has surged from $18 billion to $28 billion in just one week. Additionally, the GENIUS Act's clarity on stablecoins has reignited corporate interest, further bolstering Ethereum's bullish outlook. This combination of regional momentum and institutional backing suggests that ethereum is well-positioned for further gains, potentially signaling the onset of an altseason.
Asia Drives Ethereum's Rally as Altseason Signals Emerge
Ethereum surged past $3,800 with a 3% daily gain, extending its monthly rally to 55% despite subdued network gas fees. Asian trading sessions are fueling the momentum, with Matrixport data confirming the region's outsized influence on weekend price action.
Institutional demand is evident as ETH perpetual open interest skyrocketed from $18 billion to $28 billion within a week. The GENIUS Act's stablecoin clarity has reignited corporate treasury interest in ETH and LAYER 1 protocols, while DeFi activity provides fundamental support.
Altcoin indexes breached the 50 threshold for the first time since December, signaling potential altseason conditions. Funding rates remain elevated yet sustainable, with ETF inflows and futures positioning suggesting continued institutional participation.
$3.4B in Ethereum Gone Forever – 912K ETH Lost to Irreversible Errors
Over 912,000 ETH tokens, valued at $3.4 billion, have been permanently lost due to user errors or protocol failures, according to a GitHub post by Coinbase Head of Product Conor Grogan. The lost tokens represent more than 0.76% of Ethereum's circulating supply. Grogan's analysis, based on public blockchain records and community-sourced data, excludes unknown lost-key events, focusing only on provably inaccessible ETH.
BlackRock’s ETHA-led ETF inflows have pushed total U.S. Ethereum ETF inflows to $5.5 billion, highlighting institutional interest despite the asset's self-custody risks. Ethereum's design lacks built-in recovery mechanisms for user-side errors, compounding the issue. Major losses include 306,000 ETH trapped in a Parity wallet bug, underscoring the irreversible nature of blockchain transactions.
Grogan noted the $3.4 billion figure significantly underestimates actual losses, as it doesn’t account for forgotten Genesis wallets or undisclosed private key mishaps. When including EIP-1559 burned ETH (5.3 million tokens), over 5% of all ETH ever created—worth $23.42 billion—has been permanently destroyed.
Ethereum Gains Institutional Momentum as ETF Inflows Hit $2.18B and Treasury Plans Emerge
Ethereum's price hovers NEAR $3,800 amid a surge of institutional interest. Bernstein analysts project sustained buying pressure from banks and fintechs as spot ETH ETFs record $2.18 billion in weekly inflows—their largest on record. The asset now eyes a potential retest of its $4,878 all-time high if it clears the $4,100 resistance level.
The Ether Machine will launch a $1.5 billion ETH treasury following its merger with Dynamix Corporation. Backed by investments from Pantera Capital and Kraken, the Nasdaq-listed entity (ticker: ETHM) will hold 400,000 ETH, signaling growing corporate adoption of crypto treasury strategies.
$331M In Shorts At Risk As Ethereum Targets Key Supply Level
Ethereum's blistering 50% rally in under a week has catapulted prices above $3,700, marking a decisive shift in market control. The resurgence positions ETH to challenge the psychologically critical $4,000 threshold—a level where $331 million in bearish bets face imminent liquidation risk.
Derivatives markets reveal mounting pressure on short sellers as bullish momentum accelerates. A clean break above $3,800 could trigger cascading buybacks, while failure to hold gains may prompt consolidation. Either outcome promises heightened volatility in coming sessions.
Ethereum ETF Inflows Surge $2.18B In A Week – ‘FOMO Just Getting Started’
Ethereum is pushing above the $3,800 level, showcasing strength not seen since early 2024. The second-largest cryptocurrency by market cap has surged over 50% since late June without significant retracement, signaling bullish dominance. Institutional demand, regulatory clarity, and growing momentum are fueling this rally, with $4,000 now within reach.
On-chain metrics and market structure reinforce the bullish case, as ETH holds firmly above key moving averages and flipped resistance levels. A breakout above $4,000 could trigger the next major upward leg, drawing attention to ETH's ability to sustain momentum.
ETF inflows tell the institutional story—$2.18 billion flooded into Ethereum products last week alone. "Ethereum FOMO is just getting started," says analyst Ted Pillows, noting traditional investors are increasingly viewing ETH as a Core holding. The convergence of technical strength and institutional adoption creates a potent bullish cocktail.
Shocking Amount of ETH Lost Forever Due to User Errors: Report
At least 913,111 ETH, worth approximately $3.43 billion, has been permanently lost due to user errors, according to Coinbase Product Director Conor Grogan. The figure represents 0.76% of Ethereum's circulating supply as of January 31, 2025.
Actual losses are likely far higher when accounting for burned ETH and inaccessible wallets. Grogan notes that including the 5.3 million ETH destroyed through EIP-1559 brings the total permanent reduction to over 5% of all ETH ever created—a staggering $23.42 billion in value.
The analysis, based on verified on-chain data, reveals losses from irretrievable addresses, malfunctioning smart contracts, and wallet mismanagement. One notable incident involved 306,000 ETH lost in 2017 due to a Parity wallet bug.
