ETH on fire! Analysts say Ethereum will soon hit $4000 as short positions pile up
Ethereum (ETH) is making headlines this July with a breakout rally that's pushing the altcoin toward new 2025 highs. The latest analysis suggests that ETH is not only on the verge of reclaiming $4,000—but could be headed even higher—as a record-setting short squeeze combines with massive institutional inflows, ETF demand, and whale accumulation to ignite one of the most powerful uptrends in the current crypto cycle.
Why are analysts predicting $4,000 Ethereum very soon?
Ethereum's price has surged over 20% in the past week, pushing ETH above $3,750 and marking a new six-month high. As of press time, Ether was trading around
$3,796
, a stunning 169% rally from March's lows of approximately $1,392.
Explore courses from Top Institutes in
Select a Course Category
Operations Management
others
healthcare
Product Management
Others
Technology
Public Policy
Data Science
Design Thinking
CXO
Data Science
Artificial Intelligence
Cybersecurity
MBA
Healthcare
PGDM
Project Management
Degree
Data Analytics
Leadership
Management
MCA
Finance
Digital Marketing
Skills you'll gain:
Quality Management & Lean Six Sigma
Analytical Tools
Supply Chain Management & Strategies
Service Operations Management
Duration:
10 Months
IIM Lucknow
IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics
Starts on
Jan 27, 2024
Get Details
According to fresh analysis by
The Kobeissi Letter
, Ethereum is in the midst of 'one of the largest short squeezes in crypto history.' Short positions on Ether recently reached all-time highs, but instead of collapsing, ETH reversed sharply to the upside, forcing short sellers to cover in panic—adding fuel to the fire.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
New Container Houses Colombia (Prices May Surprise You)
Container House | Search ads
Search Now
Undo
Kobeissi notes that Ethereum has added over
$150 billion in market cap since July 1st
, just days after shorts peaked. If ETH rises another 10% from here, analysts estimate that $1 billion more in short positions will be liquidated, likely catapulting the price to $4,000 and beyond.
What's driving the Ethereum rally besides the short squeeze?
Ethereum's bullish momentum isn't solely the result of a short squeeze. Several fundamental catalysts are at play:
Live Events
1.
Institutional ETF Demand Is Soaring
ETF demand is now a dominant force in the market. U.S. spot Ethereum ETFs recorded a
record single-day intake of $727 million
in mid-July, and monthly inflows are now tracking over
$890 million
—one of the highest since ETH ETFs launched.
Asset managers and corporate treasuries are increasingly allocating capital toward ETH, as spot ETFs make the asset more accessible to traditional investors. These inflows have driven price higher while tightening supply across exchanges.
2.
Massive Whale Accumulation Signaling Confidence
On-chain data reveals a $50 million ETH purchase by whale address
0x5A8E
, who acquired
13,462 ETH
at an average price of $3,715. Large strategic entries like these often suggest institutional confidence and long-term positioning—especially when they align with ETF demand.
3.
Layer 2 Ecosystem Activity Surges
Ethereum's rise is mirrored by increased engagement across its Layer 2 stack, including platforms like
Arbitrum
,
Optimism
, and
zkSync
. These scaling solutions are benefiting from higher on-chain usage, often seen during bull runs. As capital flows into ETH, it naturally spreads across the broader Ethereum ecosystem—powering DeFi, liquidity pools, and dApps.
What does the Ethereum price chart tell us right now?
Technically, ETH is still in breakout mode. It remains well above key exponential and simple moving averages, and is tracking within an ascending channel that began after March's capitulation lows.
The Relative Strength Index (RSI) on shorter timeframes is now near 78, which signals overbought territory—but also reflects intense buying pressure. While some analysts warn of possible pullbacks, prior ETH rallies under similar momentum have often found support at higher levels, especially when ETF flows remain strong.
Price targets to watch include:
Immediate resistance:
$3,950–$4,000
Breakout zone:
$4,000–$4,200
Measured move target:
~$4,500 if momentum sustains
Will Ethereum break above $4,100?
Market strategists believe Ethereum has a good chance to decisively break through the
$4,000–$4,200 resistance zone
in the coming days. Confirmation of a clean breakout above this range could trigger what analysts describe as an 'explosive' leg higher, potentially targeting $4,500 and beyond.
Some cycle models point out that Ethereum is still lagging behind Bitcoin in terms of percentage gain from its macro bottom. If historical rotation patterns repeat, capital may flow from consolidating BTC into ETH—suggesting Ethereum has room for catch-up growth.
Bitcoin dominance drops—What does it mean for ETH?
Ethereum's outperformance is also reflected in
Bitcoin's market dominance
, which has dropped to
61.4%
, its lowest level since March. This signals a shift in trader sentiment toward altcoins—particularly ETH and XRP—which are seeing faster gains and increased institutional focus.
As long as the market remains risk-on and ETH continues attracting ETF flows and whale buyers, it's likely to lead the next leg of the altcoin season.
Institutional adoption could reshape Ethereum's future
According to Coinbase Institutional, ETH's increasing adoption by corporate treasuries and asset managers is being driven by two core themes:
Staking yield opportunities
, offering passive returns for holding ETH.
Tokenization of real-world assets
, which Ethereum is uniquely positioned to power.
BlackRock's recent $1.1 billion Ethereum purchase in just 48 hours—bringing its total holdings to $8.9 billion—underscores this trend. The asset giant now controls roughly 1.5% of Ethereum's total circulating supply, tightening available float and increasing upside volatility when demand spikes.
Could regulation slow things down?
As institutional demand grows, Ethereum is also coming under
increased regulatory scrutiny
. Lawmakers and regulators are exploring how staking, tokenization, and ETH ETFs fit within evolving securities and asset management frameworks.
While new rules could introduce short-term volatility, most analysts agree that
clearer regulatory guidance
will ultimately broaden ETH's accessibility to institutional investors and accelerate mainstream adoption.
Ethereum's breakout has serious firepower
Ethereum is in a historic moment. The convergence of a record-breaking short squeeze, $50M+ whale buys, nearly $1B in weekly ETF inflows, and a deepening institutional footprint are powering a rally that has more substance than speculation.
If ETH can break and hold above the $4,000–$4,200 resistance band, analysts believe it could mark the beginning of the next parabolic phase of this crypto cycle. Momentum is strong, on-chain data is bullish, and institutional players are clearly buying the dip.
As we head deeper into the second half of 2025, Ethereum appears ready to lead the next leg of the digital asset boom—with
$4,500
already on the radar for many traders and investors.
Frequently Asked Questions About Ethereum's Key Investors and Institutional Demand
1. Who are the biggest institutional holders of Ethereum right now?
Several major players are holding large amounts of ETH, including:
Grayscale Ethereum Trust (ETHE):
Holds over 1.2 million ETH, giving institutional investors exposure to Ethereum without directly owning the asset.
Crypto exchanges:
Coinbase holds approximately 4.9 million ETH, Binance around 4.2 million, and Bitfinex about 3.2 million.
Staking and smart contracts:
The ETH2 Beacon deposit contract holds over 64 million ETH locked for staking, while Wrapped Ethereum (wETH) contracts contain around 2.6 million ETH.
2. Which companies are adding Ethereum to their balance sheets?
A growing number of public companies are actively accumulating ETH.
BitMine Immersion Technologies
now holds over 300,000 ETH (valued at more than $1 billion), boosted by a recent investment from billionaire Peter Thiel's Founders Fund.
SharpLink Gaming
also holds over $1 billion in ETH, after accumulating more than 144,000 ETH in under two weeks—an aggressive move into the Ethereum space.
3. What asset managers are leading Ethereum ETF investment?
Several traditional financial giants are behind the surge in Ethereum ETF inflows.
BlackRock's iShares Ethereum ETF
is one of the largest, with over $9.1 billion in assets under management.
Grayscale
,
Fidelity
, and
Franklin Templeton
are also key players, offering low-cost access to Ethereum ETFs with management fees between 0.19% and 0.25%.
4. How much capital is currently flowing into Ethereum ETFs?
ETF inflows are at record highs in 2025.
In mid-July alone, Ethereum ETFs saw
a single-day intake of $727 million
—a new record.
Total inflows for July have surpassed
$3.2 billion
, driven by growing institutional interest and investor confidence in Ethereum's long-term potential.
5. Are venture capital firms also backing Ethereum?
Yes, some of the largest crypto-focused VCs have strong Ethereum exposure.
Paradigm
manages over $10 billion in crypto assets, with Ethereum as a core holding.
Polychain Capital
, managing about $5 billion, also invests heavily in ETH and Ethereum-based startups.
Firms like
Securitize
, backed by BlackRock, are building tokenization platforms directly on Ethereum, reflecting long-term conviction.
6. Are individual billionaires investing in Ethereum too?
High-net-worth individuals are beginning to make bold Ethereum plays.
Peter Thiel
, through his Founders Fund, has taken a significant stake in BitMine, a company holding hundreds of thousands of ETH—showing elite investor interest in Ethereum's future.
7. Does the U.S. government own Ethereum?
Yes, through asset seizures, the U.S. government has acquired ETH holdings.
Following high-profile crypto crackdowns and seizures (such as the Bitfinex hack), U.S. authorities now reportedly hold around
60,000 ETH
, making them one of the notable institutional holders.
8. Why Ethereum Is Attracting Massive Institutional Interest
Ethereum is entering a new era of adoption, not just by individual investors—but by some of the world's most powerful financial institutions and corporations. From
BlackRock's $9B ETF inflows
to
public companies holding over $1B in ETH
, the data shows clear momentum.
With strong ETF demand, growing staking participation, and strategic whale accumulation, Ethereum is transitioning from a speculative asset to a
mainstream institutional investment
. This transformation is tightening supply, driving prices higher, and setting the stage for a potential breakout above $4,000 and beyond.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Aditya Infotech launches Rs 1,300 crore IPO
Aditya Infotech launches Rs 1,300 crore IPO MUMBAI: Aditya Infotech, the company behind CP Plus CCTV cameras, has begun testing investor interest for its Rs 1,300 crore initial public offering (IPO) amid growing investor participation in Indian equity issuances. Aditya Infotech, in which Dixon Technologies holds a minority stake, will accept bids from July 29 to July 31, according to IPO launch details shared by the company. Aditya Infotech will sell each share at a price range of Rs 640 to Rs 675. At the upper end of the price band, the company is valued at Rs 7,912 crore. Founder Aditya Khemka and his family own about 93% of the company, which was established in 1994, just after India opened its economy in 1991. Dixon holds roughly 7% in Aditya Infotech, with vice chairman and MD Atul Behari Lall sitting on its board. The IPO comprises a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 800 crore by the Khemkas. Shares are expected to list on August 5. After the IPO, the founding family's stake in the company will drop to around 77%. India's IPO market has experienced significant growth in recent years on the back of a robust secondary market, positioning the nation among the top five IPO markets globally. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Up to 70% off | Shop Sale Libas Undo Aditya Infotech intends to use the IPO proceeds to pay off Rs 375 crore of debts. Its borrowings exceed Rs 400 crore. Its profit zoomed 205% to Rs 351 crore in FY25 and revenue grew about 12% to Rs 3,112 crore during the same period. The company has a 21% market share of India's video surveillance industry, which was valued at Rs 10,620 crore in FY25 and is projected to double by FY30. Aditya Infotech, world's third largest manufacturer of surveillance products, boasts a production capacity of over 15 million units in Kadapa, Andhra Pradesh and employs about 3,200 people. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
an hour ago
- Time of India
Govt signs MoUs worth Rs5k cr to develop 2,357MW green power
Patna: In a major push for clean energy, the state energy department on Saturday signed four memorandums of understanding (MoUs) with prominent power companies engaged in renewable energy and pumped storage to develop 2,357MW of green power, involving an estimated investment of Rs 5,337 crore. The MoUs were formalised during the launch of two ambitious policies — the Bihar Policy for Promotion of New & Renewable Energy Sources 2025 and the Bihar Policy for Promotion of Pumped Storage Project 2025 — at an event held at Gyan Bhawan. These policies are aimed at fostering green energy development and attracting major investment into the sector. The renewable energy policy is expected to unlock massive opportunities in solar, wind, biomass and newer technologies like green hydrogen and pumped storage systems. Energy minister Bijendra Prasad Yadav formally launched the two policies in the presence of industries minister Nitish Mishra, additional chief secretary of the industries department Mihir Kumar Singh, energy secretary Manoj Kumar Singh and the managing director of Bihar State Power Generation Company Ltd (BSPGCL) Mahendra Kumar. Several industry leaders and public sector representatives were also present. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo Among the MoUs signed, the BSPGCL partnered with L&T to establish a 116MW/241 MWh battery energy storage project at Kajra in Lakhisarai with an investment outlay of Rs 837 crore. It also signed an MoU with NTPC Green to develop a 1,000MW battery energy storage system (BESS) with an estimated cost of Rs 1,500 crore. Separately, the Bihar Renewable Energy Development Agency (BREDA) inked an MoU with Avaada Group to develop 1,000 MW of ground-mounted and floating solar projects, subject to feasibility. BREDA also joined hands with SECI Ltd to set up floating solar and other renewable energy projects, cumulatively valued at Rs 3,000 crore. Addressing a gathering of representatives from leading renewable energy firms, PSUs and industry stakeholders, energy minister Yadav urged investors to look towards Bihar's growing potential. "We want to tap solar energy, a non-conventional source, for Bihar's development. For this, we have introduced a new policy. The policy is aimed at protecting our future generations. We need investment in the renewable energy sector for the country's development and the creation of employment opportunities," Yadav said. He added, "We must reduce carbon emissions to mitigate the effects of global warming and safeguard human lives." Urging industry not to be swayed by isolated incidents of crime, Yadav said, "Come and invest in Bihar. If required, we are open to amending the policy in future. Don't judge the state by a few incidents. Bihar has made significant progress."
Time of India
an hour ago
- Time of India
Trump says Japan will invest $550 billion in US at his direction. It may not be a sure thing
President Donald Trump is bragging that Japan has given him, as part of a new trade framework, $550 billion to invest in the United States. It's an astonishing figure, but still subject to negotiation and perhaps not the sure thing he's portraying. "Japan is putting up $550 billion in order to lower their tariffs a little bit," Trump said Thursday. "They put up, as you could call it, seed money. Let's call it seed money." Explore courses from Top Institutes in Please select course: Select a Course Category MBA Product Management MCA Cybersecurity healthcare Artificial Intelligence CXO Public Policy Finance Technology Operations Management Healthcare PGDM Others Project Management Design Thinking Degree Management Digital Marketing Data Science Data Science Data Analytics others Leadership Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details He said 90% of any profits from the money invested would go to the U.S. even if Japan had put up the funds. "It's not a loan or anything, it's a signing bonus," the Republican president said, on the trade framework that lowered his threatened tariff from 25% to 15%, including on autos. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Solar Panels Prices Might Surprise You Affordable Solar Panel | Search Ads Search Now Undo A White House official said the terms are being negotiated and nothing has been formalized in writing. The official, who insisted on anonymity to detail the terms of the talks, suggested the goal was for the $550 billion fund to make investments at Trump's direction. The sum is significant: It would represent more than 10% of Japan's entire gross domestic product . The Japan External Trade Organization estimates that direct investment into the U.S. economy topped $780 billion in 2023. It is unclear the degree to which the $550 billion could represent new investment or flow into existing investment plans. Live Events What the trade framework announced Tuesday has achieved is a major talking point for the Trump administration. The president has claimed to have brought trillions of dollars in new investment into the U.S., though the impact of those commitments have yet to appear in the economic data for jobs, construction spending or manufacturing output. The framework also enabled Trump to say other countries are agreeing to have their goods taxed, even if some of the cost of those taxes are ultimately passed along to U.S. consumers. On the $550 billion, Japan's Cabinet Office said it involves the credit facility of state-affiliated financial institutions, such as Japan Bank for International Cooperation . Further details would be decided based on the progress of the investment deals. Japanese trade negotiator Ryosei Akazawa, upon returning to Japan, did not discuss the terms of the $550 billion investment. Akazawa said he believes a written joint statement is necessary, at least on working levels, to avoid differences. He is not thinking about a legally binding trade pact. The U.S. apparently released its version of the deal while Japanese officials were on their return flight home. "If we find differences of understanding, we may have to point them out and say 'that's not what we discussed,'" Akazawa said. The U.S. administration said the fund would be invested in critical minerals, pharmaceuticals, computer chips and shipbuilding, among other industries. It has said Japan will also buy 100 airplanes from Boeing and rice from U.S. farmers as part of the framework, which Treasury Secretary Scott Bessent said would be evaluated every three months. "And if the president is unhappy, then they will boomerang back to the 25% tariff rates, both on cars and the rest of their products. And I can tell you that I think at 25, especially in cars, the Japanese economy doesn't work," Bessent told Fox News' "The Ingraham Angle." Akazawa denied that Bessent's quarterly review was part of the negotiations. "In my past eight trips to the United States during which I held talks with the president and the ministers," Akazawa said. "I have no recollection of discussing how we ensure the implementation of the latest agreement between Japan and the United States." He said it would cause major disruptions to the economy and administrative processes if the rates first rise to 25% as scheduled on Aug. 1 and then drop to 15%. "We definitely want to avoid that and I believe that is the understanding shared by the U.S. side," he said. On buying U.S. rice, Japanese officials have said they have no plans to raise the current 770,000-ton "minimum access" cap to import more from America. Agricultural Minister Shinjiro Koizumi said Japan will decide whether to increase U.S. rice imports and that Japan is not committed to a fixed quota. Trump's commerce secretary, Howard Lutnick, has suggested that the Japanese agreement is putting pressure on other countries such as South Korea to strike deals with the U.S. Trump, who is traveling in Scotland, plans to meet on Sundayv with European Commission President Ursula von der Leyen to discuss trade. "Whatever Donald Trump wants to build, the Japanese will finance it for him," Lutnick said Thursday on CNBC. "Pretty amazing."
