Ethereum (ETH) is in the midst of a historic rally, powered by unprecedented institutional inflows into U.S. spot ETFs and a massive short squeeze that has forced bearish traders to unwind billions of dollars in positions.
____________________
TL;DR
ETH ETFs have attracted over $2 billion in July 2025 inflows – a record pace
Over $136 million in shorts were liquidated in one day; more than $1 billion could follow
Market cap has grown ~$150 billion in 3 weeks, now approaching $515 billion
ETH is up 40% in July 2025 and approaching $4,000
Still 36% below its $4,867 ATH from November 2021
____________________
Record Inflows Signal Institutional Confidence
Ethereum ETFs have taken off in July, following their launch earlier this month. Recent data shows:
$726 million in a single day (July 16 2025), mostly from BlackRock and Fidelity
Over $908 million in total inflows during the week ending July 11
More than $2 billion in cumulative inflows since early July
This represents the strongest weekly performance since ETH ETFs began trading – outpacing even the early days of Bitcoin spot ETFs earlier in 2024.
MILESTONE | #Bitcoin ETFs Set a New Monthly Inflows Record in November 2024 – Now Account for Almost 6% of Total BTC Supply
The new record surpasses the February 2024 record.
Currently, all Bitcoin ETFs now hold around 1.128 million BTC.https://t.co/OYdtVhHF1U pic.twitter.com/AhL6P5YQpG
— BitKE (@BitcoinKE) December 2, 2024
The surge in inflows suggests deepening institutional conviction in Ethereum’s role beyond a speculative asset — as the foundation for decentralized finance (DeFi), tokenization, and smart contract infrastructure.
#EthereumETFs are booming!
$726M in inflows in just 1 week has pushed $ETH past $3,400, its highest price since March 2024.
Institutional demand is surging – just like we saw with Bitcoin’s ETF rally earlier this year.
More: https://t.co/MT6dHTGFqK pic.twitter.com/fkN157TJZq
— BitKE (@BitcoinKE) July 17, 2025
A Historic Short Squeeze is Driving Prices Up
In parallel with the ETF-driven buying, Ethereum is experiencing one of the most aggressive short squeezes in its history:
Over $136 million in short liquidations occurred within 24 hours, pushing ETH past $3,600
Analysts estimate that a further 10% rally could wipe out $1 billion in additional shorts
Since July 1, Ethereum’s market cap has grown from approximately $365 billion to $515 billion – a gain of ~$150 billion in under three weeks
Short squeezes occur when traders betting against an asset are forced to buy back in as prices rise – creating a feedback loop that accelerates gains.
This phenomenon has been turbocharged by ETF inflows, creating a self-reinforcing rally as sellers get liquidated and buyers keep accumulating.
MILESTONE | #ETH ETFs Post Over $1 Billion Trading Volume ‘Surpassing Expectations’ on First Day of Trading
The nine United States Ether Exchange-Traded Funds (ETFs) saw about $1.08 billion in cumulative trading volume on their first day, 23% of what the spot Bitcoin ETFs had… pic.twitter.com/bQ4vTUFH97
— BitKE (@BitcoinKE) July 25, 2024
Ethereum Up 40% in July 2025 – All-Time High in Sight?
As of mid-July 2025:
ETH is up over 40% month-to-date, trading above $3,700 as of this writing
Weekly gains stand at ~20%, among the strongest in 2025
Technical resistance levels at $3,000 and $3,300 have been decisively broken
Analysts are now targeting $3,800 – $4,000, with some options traders positioning around a $4,000 strike for the July 25 expiry
While Ethereum still trades ~36% below its November 2021 all-time high of $4,867, the current rally marks a strong return to bullish momentum – and opens up the possibility of revisiting ATH territory by Q3 2025.
Ethereum ( $ETH ) Breaks Past $4,000 to Set a New All-Time High: https://t.co/NnyWWopFYD
— BitKE (@BitcoinKE) May 10, 2021
While these movements are largely driven by Western institutional flows, the ripple effects are felt globally.
As Ethereum continues its climb, all eyes are on the $4,000 threshold – a key psychological and technical level that could set the tone for the second half of 2025.
#BitcoinETFs now dominate U.S. trading
50% of $BTC volume now flows through ETFs – not spot exchanges.
$IBIT (@BlackRock) leads w/ 40%+ share $14.8B in ETF inflows YTD 85% of price discovery now ETF-driven #TradFi giants are coming inhttps://t.co/QxMjI0Op0e pic.twitter.com/IsJBAJN83U
— BitKE (@BitcoinKE) July 16, 2025
Stay tuned to BitKE Updates on crypto markets.
Join our WhatsApp channel here.
Follow us on X for the latest posts and updates
Join and interact with our Telegram community
___________________________________________
