Ethereum surges amid one of the largest short squeezes in crypto history, fueled by institutional buying and U.S. political support for digital assets.
The cryptocurrency market is witnessing an unprecedented short squeeze, with Ethereum’s market value surging by $150 billion since July 1. Net short positions on ETH have hit record levels, amplifying upward pressure as major institutions step in to buy.
According to BlockBeats, the rally was intensified after World Liberty Financial, a fund linked to President Donald Trump, disclosed a fresh $5 million Ethereum purchase within the past 24 hours. The move follows growing signs of institutional adoption, with BlackRock’s Ethereum ETF reportedly increasing holdings throughout June.
Ethereum is now trading near $3,700, with analysts forecasting a near-term target of $4,000 as the short squeeze accelerates. The asset has outperformed Bitcoin for the fourth consecutive week, up over 40% month-to-date.
Bitcoin has also returned to the $120,000 level, adding $900 billion in market cap since bottoming in April. Institutional capital inflows into both BTC and ETH are rising sharply amid bipartisan regulatory clarity and growing political support.
Key Drivers Behind the Surge:
Short squeeze pressure: Record-high net short positions are being liquidated as Ethereum rallies.
Trump-linked Ethereum buy: World Liberty Financial added $5 million in ETH, triggering upside momentum.
BlackRock ETF inflows: Gradual ETH accumulation throughout June strengthens the institutional bid.
Regulatory momentum: The U.S. House passed three crypto-friendly bills, supporting long-term growth.
401(k) inclusion potential: Trump is reportedly considering an executive order to allow 401(k) retirement funds to allocate to crypto, which could unlock trillions in capital.
Weakening USD: The U.S. Dollar Index (DXY) has dropped 10% year-to-date, boosting the appeal of decentralized assets.
Market Outlook
Ethereum is approaching a critical breakout zone at $3,700–$3,800, with strong potential to test $4,000 in the coming days if momentum holds. The current price action is being driven by both technical liquidation of shorts and fundamental capital inflows, marking one of the most bullish periods in Ethereum's history.
Meanwhile, Bitcoin’s compound annual growth rate (CAGR) remains above 90%, reaffirming its long-term appeal to institutions and sovereign wealth funds.
