Ethereum, the second-largest crypto asset, has been in a strong uptrend over the past week, rallying alongside the broader market. While much of the uptick has been tied to positive investor sentiment and favorable U.S. regulatory outlook, new data points to another key driver.

According to a July 16 Matrixport report, nearly all of Ethereum’s recent upside is being driven by Asia-based traders. Out of the 20% ETH (ETH) has gained over the past month, 17 percent of that occurred during Asian trading hours.

The data suggests that momentum in the asset’s price is not coming from the U.S. market, despite the ongoing buzz fueled by positive trends such as the ‘crypto week’ tag and growing capital inflows.

Much of Ethereum’s uptrend has been associated with rising demand for the U.S.-listed spot exchange-traded funds, which recorded over $450 million in inflows over the past week. Growing institutional interest has also taken credit, as more firms favor ETH as a worthy treasury reserve asset. 

At least three companies have disclosed major ETH investments in recent days, such as iGaming firm SharpLink with a $213 million allocation, followed by Nasdaq-listed Bit Digital and mining firm Bitmine, which added nearly $500 million.

Matrixport data now suggests that Ether demand is also accelerating across Asian markets, adding to the token’s momentum. Supporting this, SoSoValue data shows Ethereum-tracking ETFs in Hong Kong jumped more than 5% across the board in the past day. 

But despite the strong price action, all funds traded at a discount to their net asset value (NAV), suggesting lingering investor caution or regional price dislocations. 

Ethereum trades slightly over $3,100 at press time, and its uptick marks a strong recovery after several months of underperformance. With nearly 7% gains in the past day alone, ETH continues to outpace Bitcoin (BTC) and much of the broader market, and optimism is building that the token could extend its climb and push even higher.