Ethereum News Today: Ethereum Surges 70% Driven by Short Squeeze and Institutional Buying

Ethereum has experienced a significant surge, with its price increasing by over 70% since July 1, 2025. This rally has added $150 billion to its market cap, driven by a massive short squeeze, institutional buying from major players like BlackRock and Trump’s financial group, and anticipated U.S. regulatory reforms. The short squeeze was triggered when net short exposure on Ethereum hit record highs, 25% higher than the February 2025 peak, leading to a wave of forced liquidations as the price began to rise. According to The Kobeissi Letter, a further 10% increase in ETH price could result in another $1 billion in short liquidations, pushing prices even higher.

Institutional players have been actively buying Ethereum, with World Liberty Financial, linked to President Trump, purchasing $5 million worth of ETH just a day before the rally gained significant attention. BlackRock’s Ethereum ETF has been accumulating ETH for 29 out of the past 30 days, indicating that institutional investors may have anticipated the short squeeze before it fully unfolded. This institutional involvement suggests a shift in the crypto market from retail-driven hype to institution-led growth, backed by regulation and massive capital readiness.

While Ethereum has stolen the spotlight, other cryptocurrencies like Bitcoin and XRP have also seen bullish momentum. Bitcoin has reclaimed the $120,000 level, recovering nearly $900 billion in market cap since April. XRP is also experiencing a bullish trend, reflecting a broader capital rotation into altcoins. Analysts like Colin Talks Crypto predict that Ethereum could hit $15,000 to $20,000 in this cycle, which would be a 3x to 4x increase from its prior all-time high of $4,800 in 2021.

The most explosive catalyst for Ethereum’s price could be the expected executive order from President Trump allowing 401(k) retirement plans, worth $8.7 trillion, to invest in cryptocurrencies. If passed, this could unlock more than double the capital of the current global crypto market, marking the first time regulated retirement funds could directly allocate to crypto assets like Ethereum and Bitcoin. This development, along with favorable regulations and growing ETF demand, could push Ethereum’s price even higher in the coming months.

Ethereum’s rally is not just technical—it’s political and structural. In July, the U.S. House passed several bills that define digital asset classifications, regulate stablecoins, and limit the Federal Reserve’s digital currency authority. With bipartisan support behind these bills, the U.S. crypto market is entering a more mature and regulated phase, creating confidence for long-term institutional involvement. This regulatory clarity, combined with bullish technicals and massive capital inflows, could outpace Bitcoin’s rally in the coming months.

Many analysts forecast that Ethereum could reach $3,500–$5,000+ by the end of 2025, assuming continued ETF inflows, regulatory clarity, and potential short squeezes. Some projections go as far as $8,000 in 2025, with others seeing $15,000–$20,000 in a full blow-off rally, backed by institutional and retirement-market capital. With crypto now entering the retirement market conversation, Ethereum’s path to $15,000 no longer seems like a moonshot; it may be a matter of time.