Ethereum Soars as $141M ETF Inflows Trigger Short Squeeze and Rate Expectations Plummet

Ethereum (ETH) has seen a significant surge in price following a $141.39 million influx of funds into spot Ethereum ETFs in the United States on September 3, marking a sharp turnaround from the previous day's $48.08 million exodus.

This sudden change in market sentiment was also influenced by broader macroeconomic catalysts, including diminishing Iran conflict concerns and reduced expectations for Federal Reserve rate increases.

The price of ETH climbed to $2,508, a 5% gain, with the critical $2,560 resistance threshold approaching. Market analyst Ted Pillows (@TedPillows) noted that Ethereum reached the $2,550 resistance barrier before encountering selling pressure and suggested that a weekly closing price exceeding $2,550 might catalyze a move toward the $3,000 threshold.

The correlation between ETF activity and spot market performance remained tight, with price movements mirroring fund flow patterns nearly perfectly during both sessions. This led to a bearish trader short squeeze, with $82.41 million in short liquidations within 24 hours, dwarfing the $20.76 million wiped from long positions.