Ethereum Surges 29% to $1,800 as Short Bets Decline and Institutional Investments Rise

Ethereum, the world’s second-largest cryptocurrency, has recently surged past $1,800, marking a three-week high after previously dipping below $1,400. This sudden rise has sparked curiosity among investors about the underlying factors driving this price movement.

One significant factor contributing to Ethereum’s price increase is the reduction in short bets. Short positions on the CME have decreased to under $500 million, the lowest level seen in 2025. Previously, traders profited from the substantial gap between Ethereum futures and its current price. However, as market conditions changed and the gap narrowed, the trade became less lucrative, leading traders to sell their Ethereum holdings and causing a price drop. With fewer traders betting against Ethereum and reduced selling pressure, the cryptocurrency’s price has begun to recover.

Another key driver of Ethereum’s recent surge is the inflow of institutional investments. After more than a week of outflows, Ethereum ETFs experienced positive inflows totaling $38.8 million. This significant inflow, primarily contributed by Fidelity FETH with $32.7 million and Bitwise ETHW with $6.1 million, indicates growing interest from institutional investors, which could further boost Ethereum’s price.

Additionally, Bitcoin’s recent rally has had a positive impact on Ethereum. Bitcoin hit a seven-week high of $94,000, sending a wave of optimism through the entire crypto market. As the leading cryptocurrency, Bitcoin’s surge has lifted Ethereum, the largest altcoin, along with it.

Looking ahead, Ethereum faces modest resistance levels. According to on-chain data, the biggest potential sell zone is around $1,860. If Ethereum can break through this level, it may face little resistance on its way to the $2,000 mark. However, if Ethereum struggles to stay above $1,800, the price could drop to support levels around $1,765 or $1,710.