Ethereum News Today: Ethereum Surges 2.9% to $3,837 Amid Short Squeeze and Bullish Momentum

Ethereum (ETH) experienced a significant price surge, reaching $3,837 with a 2.86% increase, driven by a short squeeze and strong bullish candles on the 5-minute chart. This price movement was fueled by a combination of market forces and a shift in investor behavior, with ETH gaining 2.9% in a single day of trading. The surge was notably marked by a short squeeze on the ETH/USDT pair, which resulted in a rapid 2.9% price increase. The five-minute candlestick chart displayed a series of bullish green candles, pushing Ethereum's price from around $3,756 to $3,837. This action forced short sellers to cover their positions, accelerating buy orders and aiding the price rise. Buyers observed that the price had surpassed recent intraday resistance points, indicating bullish control. With the liquidation of shorts in progress, the price action became more aggressive, suggesting that Ethereum was on a new wave of gains, supported by high-frequency liquidations and increased spot purchases.

On-chain data from Glassnode revealed a notable shift in Ethereum ownership dynamics. Since early July, the amount of ETH held by first-time buyers has increased by approximately 16%, indicating a renewed influx of fresh capital into the Ethereum market. This rise diverged from earlier periods of accumulation by long-term holders. The ETH supply held by first-time investors had been declining in the first half of the year but began to reverse in mid-June. By mid-July, the indicator was moving in a bullish direction, signaling an upswing in the number of new entrants into the market. This inflow can help sustain demand pressure, potentially slowing the price momentum in the coming weeks.

Technical patterns on the ETH/BTC hourly chart indicated a continuation pennant at the 0.032 mark. Earlier consolidation scenarios on the same chart led to bullish Ethereum price breakouts, with every triangle formation followed by a leg-up. The current trend was developing following an upward vertical price movement. At the time of writing, the ETH/BTC ratio was approximately 0.032208, and if the pennant formation breaks at higher levels, Ethereum may outperform Bitcoin in the short run. Such formations often precede larger structural movements, especially when market-wide capital begins rotating into ETH from BTC during altcoin cycles.

Whale activity on the Ethereum network has also surged significantly. In the last 24 hours, over $18.25 billion of large transactions were registered, marking the greatest one-day trading volume with large accounts within the previous seven days. This volume surge aligned with a larger rally in price levels and showed involvement from high-net-worth wallets or institutional accounts. These transactions may be linked to portfolio rebalancing, new positioning, or internal transfers. Regardless of their origin, such volume tends to align with periods of elevated volatility and directional movement. Further supporting bullish sentiments, recent analysis noted Ethereum's sharp rise, institutional activity, and whale transactions exceeding $18 billion. With ETH price gaining over 47% in a month and nearing the $4,000 milestone, analysts forecasted a surge to $10,000.