Ethereum (ETH) has gained with notable spikes this week, jumping from a low of around $2,900 on July 15 to now trading above $3,600. That’s more than a 24% increase in a week, despite seeing its net leverage short hit a record high.
The surge in price comes as the entire crypto market picks up steam. Bitcoin, XRP, Solana, and other major coins’ prices have also soared. The total crypto market capitalization now sits around $4 trillion.
ETH alone has seen huge inflows, with its market cap now above $436 billion. Since July 1, Ethereum has added over $130 billion in market cap–as per CoinMarketCap data.
On June 16, the U.S. Ethereum Spot ETFs recorded their highest daily inflow since launch—$726.74 million. The next day saw another $602 million come in, as per SoSoValue.
Further, big players like SharpLink, BitMine, and BlackRock have started allocating treasury funds into ETH, pushing adoption further. President Trump’s World Liberty Financial has also been active in Ethereum acquisition, with a recent $5 million purchase.
OTC Platforms See ETH Shortage
With its surging demand, OTCs appear to be running out of ETH as investors are massively absorbing the available supply. A recent post from Ryan Adams of Bankless quotes Wintermute, a prominent crypto market maker, who notes that its OTC platform has no ETH left for sale.
This shift suggests that most of the institutions and high-profile market players have purchased most of the ETH over OTC deals. Now anymore ETH purchases would be executed via the secondary market.
The Historical Short Squeeze on ETH
Noting the trajectory, Kobeissi Letter, states that ETH is currently witnessing the largest short squeeze in history.
A recent post from Zerohedge revealed the record high leveraged shorts on ETH. The analysts noted that while the amount of short traders is at a new high, the buying pressure from various institutions, whales, and retail investors has only increased its price.
“As we look ahead, we believe the themes driving crypto higher will result in major macroeconomic shifts,” the Kobeissi Letter added. “This is redefining the way markets are operating.”
Is $6,000 New Target?
Institutional interest is also clearly picking up, giving investors more confidence. The new U.S. crypto bill has also added to the positive sentiment.
ETH is holding strong above $3,600 and still shows a strong buying momentum. Analysts suggest that if the uptrend continues, the coin could break the weekly resistance around the $4,000 psychological level and make a push toward $6,000 in next few months.
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