Ethereum News Today: Arthur Hayes Reverses Ethereum Bet as ETH Surges 17.8% to $4,150

Arthur Hayes, co-founder of the now-defunct cryptocurrency exchange BitMEX, has reversed his position on Ethereum just one week after selling $8.3 million worth of ETH at $3,507 on July 19, 2025 [1][2][4][5][7]. According to on-chain data from LookOnChain, Hayes repurchased Ethereum using $10.5 million in USDC stablecoin over the weekend, with the price of ETH having surged to over $4,150 [1][3][6]. This marked a significant turnaround, as the price of ETH rose above $4,000 for the first time since December 2024, contradicting Hayes’ earlier bearish outlook [1][6].

Hayes humorously acknowledged the reversal in a post on X, stating, “Had to buy it all back, do you forgive me @fundstrat?” and vowing, “I pinky swear, I’ll never take profit again” [3][6]. His initial sale had been framed as a risk-mitigation move amid concerns about macroeconomic headwinds, including U.S. jobs data and potential Trump-era tariffs [1]. However, the subsequent price action rendered his earlier caution moot, as Ethereum climbed to $4,250—the highest level since December 2021 [6].

The Ethereum price rally was driven by a wave of short liquidations and strong technical momentum. On July 19 alone, over $105 million in short positions were liquidated, with cumulative short liquidations reaching $129 million in 24 hours [6]. This sharp shift in market dynamics made it increasingly difficult for short-sellers to maintain their positions and created a self-reinforcing bullish environment for ETH.

Hayes’ return to the Ethereum market reflects a broader trend of institutional and retail confidence. According to data from EmberCN, unknown whale and institutional investors have accumulated over 1.03 million ETH since July 10, with an estimated average entry price of $3,546 [6]. Meanwhile, spot Ethereum ETFs have recorded inflows of $537 million over the past four trading days, indicating growing demand from traditional investors [6].

Hayes’ actions also align with the broader narrative of a strengthening bull market cycle for Ethereum. The co-founder of BitMEX had previously been a vocal bear in the first half of 2025, warning of a potential drawdown. His quick reversal not only highlights the fast-moving nature of the crypto market but also reinforces the ongoing optimism that has fueled recent price action.

The current price consolidation near $4,160 suggests that the market is assessing the sustainability of the rally. Analysts are watching the $4,100 level closely, as a breakout could trigger a short squeeze and push the price toward $4,400–$4,500 within hours [6]. Retail traders have also shown increasing bullish sentiment, with Santiment tracking a notable rise in bullish chatter following the $4,000 breakout [6].

While some analysts, including Fundstrat’s Tom Lee, have drawn comparisons to Bitcoin’s 2017 bull run and projected Ether prices as high as $16,000, others caution against buying at current levels [6]. Some suggest that ecosystem projects may offer better upside if the momentum continues, rather than chasing ETH at elevated prices.

Hayes’ return to Ethereum underscores the volatility and rapid price swings characteristic of the crypto market. As institutional demand and spot ETF inflows continue to support the bullish trend, his actions may influence other traders to reconsider their positions. The market remains in a state of flux, and the next few weeks could determine whether this rally sustains or fades.

Source:

[1] (title1) https://www.coindesk.com/markets/2025/08/09/arthur-hayes-had-to-buy-it-all-back-after-selling-usd8-3m-worth-of-eth

[2] (title2) https://cointelegraph.com/news/arthur-hayes-eth-buyback-higher-price

[3] (title3) https://www.ainvest.com/news/ethereum-news-today-arthur-hayes-enters-ethereum-market-price-surpasses-4-000-2508/

[4] (title4) https://www.mitrade.com/au/insights/news/live-news/article-3-1026521-20250810

[5] (title5) https://holder.io/news/arthur-hayes-buys-ether-after-selling-8m/

[6] (title6) https://financefeeds.com/ether-jumps-to-4250-highest-since-2021-as-short-liquidations-fuel-rally/

[7] (title7) https://www.allsides.com/news/2025-08-09-0900/banking-and-finance-eth-news-arthur-hayes-had-buy-it-all-back-after-selling-83m