Bitcoin and Ether extend relief rally as ETF buying returns

Bitcoin and Ether extended their relief rally on July 4, building on gains from earlier in the week as institutional buyers returned to the spot ETF market.

The bounce began after both BTC and ETH hit multi-year lows, triggering a wave of dip buying. Data shows that traders opened long positions near those lows, while spot Bitcoin ETFs saw a $221 million inflow on July 2 — the largest single-day inflow in weeks. This renewed demand from institutional investors helped stabilize prices and fueled the ongoing recovery. However, the rally is built on heavy margin use, creating a precarious situation where spot follow-through is critical to sustain the trend. If spot buying fails to keep pace, the leveraged longs could unwind quickly, leading to sharp reversals.

For crypto traders, the ETF inflow is a key signal of shifting sentiment. After weeks of outflows and extreme fear, the return of institutional capital suggests that the market may have found a temporary floor. The relief rally has been broad-based, with altcoins also participating. Traders should monitor BTC and ETH spot volumes closely; a sustained increase in spot buying would confirm the strength of the trend. Conversely, a drop in volumes could signal exhaustion. NowPrice's crypto page provides real-time pricing and volume data to help traders track these moves.

Looking ahead, the key question is whether the rally can attract further buying or if it will fade. The next major resistance levels for Bitcoin are around $65,000 and $70,000, while Ether faces resistance near $3,500. On the downside, support at the recent lows around $55,000 for BTC and $2,800 for ETH will be crucial. Traders should also watch for any macroeconomic catalysts, such as Fed commentary or jobs data, that could shift risk sentiment. The ETF inflow is a positive sign, but sustained follow-through is needed to confirm a broader trend change.