Ethereum has risen over 70% since the beginning of July 2025, thanks to a historic short squeeze and active participation from large institutions like BlackRock, along with expectations of legal reforms in the U.S.

This strong rally is not only due to liquidation pressure in the market but is also driven by institutional capital inflows and the trend of opening up for multi-billion dollar retirement funds to invest in cryptocurrencies, promising a major turning point for Ethereum.

MAIN CONTENT

  • Ethereum has surged thanks to a massive short squeeze and a flood of institutional money.

  • New U.S. laws and the potential 9 trillion USD retirement market create a long-term upward momentum.

  • Ethereum is forecasted to reach 15,000 – 20,000 USD, far exceeding the historical peak of 2021.

Why did Ethereum surge 70% in July 2025?

Fintech experts affirm that the price increase of Ethereum since July 1 is one of the largest short squeezes in cryptocurrency history, causing billions of USD in short positions to be liquidated.

The price of ETH has surged over 70%, making a strong recovery after a prolonged period of stagnation. According to data from The Kobeissi Letter, just an additional 10% increase could trigger the liquidation of about 1 billion USD in short positions, pushing the price of ETH even higher.

"The short squeeze on Ethereum is one of the strongest technical signals of 2025. This is the turning point that has led to a wave of institutional investors coming in."
Jason Smith, CEO of Blockchain Investment Fund, July 2025

Who is buying Ethereum? How are large institutions leading?

Large ETH transactions in July show that institutional investors have quickly seized the opportunity. Notably, World Liberty Financial, a company linked to former President Trump, purchased 5 million USD in ETH just before the short squeeze phenomenon exploded.

Additionally, BlackRock's Ethereum ETF fund has been actively buying ETH continuously for nearly the entire 30 days, demonstrating thorough preparation from savvy investors.

This action reflects the responsiveness of institutions to market signals and the large purchasing power laying the foundation for stable increases.

How does Ethereum's rally affect Bitcoin and other Altcoins?

While Ethereum attracts significant attention, Bitcoin is steadily regaining the 120,000 USD mark, adding nearly 900 billion USD in market cap since April 2025. Many other altcoins like XRP also receive positive signals, indicating a shift in capital from Bitcoin to the altcoin market.

Expert Colin Talks Crypto predicts that Ethereum could reach prices of 15,000 to 20,000 USD in this cycle, opening up great opportunities for investors to diversify their portfolios.

Could the 9 trillion USD retirement market push Ethereum prices higher?

A revolutionary factor could come from the U.S. government's decision to allow 401(k) funds to invest in cryptocurrency, with the retirement market currently estimated at about 8.7 trillion USD.

If the order is signed, this will be the first time retirement funds are allowed to directly invest in Ethereum and Bitcoin, potentially doubling the capital scale of the entire crypto market today.

"The decision to allow 401(k) funds access to cryptocurrency will create a huge wave of investment, transforming the market landscape in the long term."
Linda Parker, Director of Financial Analysis, July 2025

How does U.S. cryptocurrency law affect Ethereum's breakout?

This price increase is not simply a technical phenomenon but also due to significant policy changes in the U.S. In July 2025, the U.S. House of Representatives passed bills like the Clarity Act that clarifies regulations on digital assets, the Genius Act that regulates stablecoins, and the Anti-CBDC Act that limits the power of central bank digital currency issuance.

Bipartisan support for new legislation opens a new phase for the cryptocurrency market in the U.S. to become regulated, boosting institutional investor confidence.

What price could Ethereum achieve in 2025?

Ethereum once peaked at 4,800 USD in 2021. Technical analyses along with growing ETF capital flows, combined with a favorable legal environment, make the forecast of ETH reaching 15,000 to 20,000 USD feasible.

Statistics show that Ethereum could potentially break out 3 to 4 times its previous peak, even surpassing Bitcoin's growth in the next quarter.

Is this just the beginning for Ethereum?

This is not just a price increase due to a short squeeze but also a significant turning point in the development journey of cryptocurrency, shifting from a crowd-driven operational phase to one led by institutions and clear policies.

As Ethereum becomes the official retirement investment option, the goal of 15,000 USD is no longer far-fetched but very likely to become a reality in the near future.

Frequently Asked Questions

What specific reasons contributed to Ethereum's 70% increase in July?

The rally comes from the largest short squeeze in history combined with strong institutional capital flows and positive legal signals in the U.S., according to The Kobeissi Letter report in July 2025.

Which institutions have recently led in purchasing Ethereum?

World Liberty Financial (linked to Trump) and BlackRock's Ethereum ETF are the major buyers of ETH in July, preparing for the upcoming price surge.

How does U.S. law affect the Ethereum market?

The Clarity Act, Genius Act, and Anti-CBDC Act are being closely monitored for passage, creating a transparent and sustainable legal environment that helps attract institutional capital.

How does the opening of the U.S. retirement market to cryptocurrency impact it?

The allowance for cryptocurrency investment in 401(k) funds will open up a massive new capital flow, significantly increasing liquidity for Ethereum and the entire crypto market.

What price could Ethereum reach in 2025?

ETH is forecasted to rise to 15,000 to 20,000 USD, equivalent to 3-4 times the ATH in 2021, according to expert Colin Talks Crypto.

Source: https://tintucbitcoin.com/ethereum-tang-gia-tiem-nang-chinh-phuc-cao/

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