Ethereum Jumps 3.54% on Bitcoin-Driven Short Squeeze and Pro-Tokencization SEC Narrative
Ethereum saw a sharp increase of 3.54 percentage points in the last six hours, driven by a market-wide short squeeze triggered by Bitcoin's breakout and fresh regulatory news favoring Ethereum's role in tokenized assets.
The short squeeze was led by Bitcoin pushing through key resistance around $78,000, reclaiming and exceeding $80,000. This led to large-scale short liquidations across the crypto complex, with approximately $192 million of leveraged positions liquidated in one hour, including 36 million dollars specifically in Ethereum shorts.
Regulatory news from the US Securities and Exchange Commission (SEC) also played a role in Ethereum's surge. The SEC issued an 'Innovation Exemption' allowing new 'Tokenized Securities Venues' to trade tokenized versions of National Market System stocks on public, permissionless blockchains. This exemption favors Ethereum as it explicitly requires the use of such blockchains.
Ethereum's own microstructure and fundamentals have made it particularly sensitive to positive catalysts and squeezes. On-chain costs have collapsed, with average transaction fees falling by over 85 percent from an April peak. Exchange supply is also structurally tighter, with less readily sellable ETH on exchanges.