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

Ethereum has recently gained significant attention due to a remarkable price rally, with its value surging nearly 70% in less than a month, pushing its market cap up by over $150 billion. This surge has sparked intense discussions about the future trajectory of Ethereum's price, with many experts and traders closely monitoring the market.

The recent price rally was triggered by a major short squeeze, where traders who had opened leveraged short positions in anticipation of a price drop were forced to buy back Ethereum to avoid losses. This panic buying drove prices up even faster, contributing to the current bullish sentiment surrounding Ethereum. The market move was further fueled by regulatory clarity from US crypto bills passed during the crypto week, which could accelerate adoption.

Institutional buying has also played a significant role in heating up the market. President Trump’s World Liberty Financial recently bought $5 million worth of Ethereum, adding to the growing momentum. BlackRock’s ETF reportedly added Ethereum on 29 out of the last 30 trading days before July began, and made its biggest daily purchase ever of $499.2 million worth of Ethereum in a single day. SharpLink Gaming also added $700 million in Ethereum to its treasury since July 16, becoming the largest holder of this cryptocurrency.

According to the analyst's forecast, more liquidations could drive Ethereum even higher. Billions in short positions have already been wiped out, and if the price climbs just 10% more, it could trigger another $1 billion in liquidations. This creates even more buying pressure, as many of these shorts are using borrowed money. Ethereum is currently trading between two significant Fibonacci levels, with the next level of resistance at $3,903 and support between $2,984 and $3,190. A move above $3,903 could solidify the direction towards the $4,000 price target.

However, warning signals are emerging. The RSI is at 83.6, its highest overbought reading since January 2025. In addition, funding rates have surged 248% this week, increasing the risk of a long squeeze. Despite these warning signals, the combination of panic short-covering and real buying demand is making Ethereum one of the most closely watched cryptocurrencies today.

Ethereum is not alone in its recent price surge. Ripple (XRP) is also showing strength, and Bitcoin has crossed $120,000, adding over $900 billion in market cap since April. Having trailed for months, Ethereum is finally closing the gap, and the recent Ethereum price prediction indicates that it might be spearheading the next leg of the bull cycle. The present Ethereum price prediction shows increasing optimism in both its short-term surge and overall resilience, with many believing that $4,000 Ethereum is not an "if," but a "when."