Ethereum News Today: Ethereum Hits $4,244 as ETF Inflows and Short Squeezes Drive 28% Rally

Ethereum’s price has surged to over $4,300, marking a significant rally that brings the asset within 15% of its all-time high of $4,878, previously set in November 2021 [1]. The move has sparked widespread attention across the cryptocurrency market, with major players including institutional investors and leading exchanges like Binance and Coinbase increasing their Ethereum allocations. This shift reflects growing confidence in the asset’s long-term potential and its broader role in the blockchain ecosystem.

The recent price movement has been driven by a combination of factors, including strong institutional adoption and rising trading volumes. In the past week alone, Ethereum has gained 28%, with inflows into US-based spot Ethereum ETFs reaching $326.6 million—surpassing Bitcoin ETF inflows of $253.2 million [2]. Over the last 24 hours, Ethereum-focused ETFs attracted a total of $461 million in flows, indicating a notable uptick in institutional interest. The heightened activity has also triggered significant short squeezes, with $184 million in short positions liquidated as the price crossed key resistance levels [3].

The rise in Ethereum’s value has broader implications for the cryptocurrency market. As Ether gains strength, Bitcoin’s dominance—the percentage of the total crypto market cap that Bitcoin represents—has declined. This shift suggests a realignment in investor preferences, with many now favoring Ethereum’s expanding utility in decentralized finance (DeFi) and layer-two scaling solutions. Analysts note that Ethereum’s performance could drive further innovation in the DeFi space, as past price surges have historically led to increased activity in related protocols and tokens.

Ethereum co-founder Vitalik Buterin has also seen a resurgence in his onchain wealth, with his portfolio reaching an estimated $1.04 billion at the time of publication [2]. However, Buterin has expressed caution regarding the growing trend of Ethereum treasury companies, warning that excessive leverage could introduce long-term instability [6]. Despite these concerns, the overall sentiment remains bullish, with Ether trading at $4,244 and some analysts forecasting a move toward $4,500 in the near term [2]. A break above this level could put an estimated $1.35 billion in short positions at risk, potentially triggering another round of short squeezes.

The current market dynamics highlight Ethereum’s growing influence in the broader crypto landscape. Increased staking activity and derivative trading have contributed to the asset’s resilience and appeal to both retail and institutional investors. As the price continues to edge closer to record levels, market participants are closely monitoring for signs of regulatory adjustments, which could further shape the trajectory of Ethereum’s growth.

Source:

[1] https://www.ainvest.com/news/ethereum-news-today-ethereum-surpasses-4000-triggering-short-squeezes-bullish-outlooks-2508/

[2] https://cointelegraph.com/news/ethereum-vitalik-buterin-onchain-billionaire-eth-price-surging

[3] https://beincrypto.com/ethereum-price-all-time-high-projection-analysis/

[6] https://blockchainreporter.net/ethereum-hits-4300-ahead-of-minor-downturn-amid-building-market-momentum/