The Ethereum price appears to be in bullish territory again, following its rally to a five-month high. ETH has surged amid a huge short squeeze, institutional buying, futures activity, and positive expectations regarding ETH staking for spot ETFs.
Ethereum Price Rebounds On Short Squeeze, Whale Purchase, And Institutional Bet
The amount of leveraged short positions on Ether is at an all-time high, as disclosed in an X post by The Kobeissi Letter. The chart attached shows net Ethereum leveraged positions at –13,291 contracts, the most bearish since records began. A similar setup occurred before the April 2025 Ethereum price bottom. The record short exposure has now triggered a forced wave of buying as traders close losing positions.
Supporting this, institutional activity around Ethereum has surged. BitMine, a company backed by billionaire Peter Thiel, recently launched with a $500 million Ethereum treasury strategy. BitMine plans to become the largest ETH treasury in the world and has already filed to offer staking services once ETF regulations permit it. The company’s filing and public plans have attracted strong market interest.
Meanwhile, Sharplink Gaming revealed it now holds over 280,000 ETH, surpassing the Ethereum Foundation’s treasury. Several large ETH transfers between exchanges and cold wallets have been detected in recent days. Their actions indicate further institutional positioning and also help boost the Ethereum price.
Trump’s World Liberty Financial (WLFI) is another Ethereum that is actively accumulating. According to the on-chain analytics platform Lookonchain, the firm has recently expanded its treasury to 67,806 ETH following a $5 million purchase.
ETF Inflows, Futures Rally and Staking Hopes Boost ETH’s Bullish Momentum
Ethereum ETFs in the U.S. reported their best week since inception. They received more than $900 million, together with positive anticipation regarding new rules on staking.
The futures market also aids the Ethereum price growth. Based on the available data from Coinalyze, Ethereum futures open interest is increasing, and funding rates have turned positive.
This implies that there are increasing traders who are wagering on the extra price increase and are paying to hold long positions. This matches the short squeeze narrative and confirms ongoing market strength.
Another major factor is staking optimism. Right now, over 26% of the total ETH supply is locked in staking contracts. Investors are now hoping that U.S. spot Ethereum ETFs will be allowed to stake as well.
If that happens, the staked percentage will grow, reducing the liquid supply further and supporting higher Ethereum prices. Current CoinMarketCap data shows that the Ethereum price is $3,233 and is up 8.22% in the last day.
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
He holds a degree in Geophysics from OAU, Nigeria. When he’s not writing, he loves watching soccer and reading educative journals.
He can be reached via [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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