Ethereum Soars 29% as Washington Push Meets Short Squeeze

Ethereum's price surged by nearly 29% over the past week, marking one of its most significant advances in months. This rally was driven by a combination of factors, including a push from Washington and a $3 billion short squeeze.

As Ethereum broke through key resistance levels at $2,000 and $2,300, traders who had positioned for declines were compelled to cover their positions, leading to over $3 billion in leveraged crypto positions being liquidated within 24 hours. This cascade of buy-to-cover orders fed directly into the upward price movement, amplifying the underlying bullish catalysts.

Those catalysts were largely political, with President Trump's call for Congress to advance the Clarity Act legislation and the SEC's introduction of new regulations that would allow mature networks like Ethereum to exit securities classification if they meet specific governance criteria. The US Treasury also announced it would at least double its liquidity-supporting buybacks of long-dated government bonds, from roughly $2 billion to $4 billion per operation.

Spot Ethereum ETFs have recorded net inflows for four consecutive trading days, with daily inflows exceeding $200 million on Thursday. Institutional engagement extends well beyond the ETF complex, with Bitmine Immersion Technologies acquiring an additional 9,926 ETH on Monday and Fidelity filing with the SEC to enable staking within its FETH fund.