Ethereum Surges Above $2,500 as Short Squeeze and ETF Inflows Fuel Rally
Ethereum (ETH) has broken through the $2,500 barrier for the first time since mid-April, following an 8% surge on Friday. This move comes after a significant short squeeze and increased ETF inflows.
The US spot Ethereum ETFs have seen net inflows of $512.4 million over four consecutive days, with Thursday alone recording $220.7 million in net inflows. Coin Bureau noted that this is the biggest ETF inflow streak since September 2025.
Bearish traders were caught off-side as ETH short liquidations totalled $265 million in 24 hours and $1.69 billion over three days, with one 24-hour window seeing $237.44 million in shorts liquidated versus $65.14 million in longs.
Traders are now eyeing the next price target of $3,000, with some calling for a sharp move to that level. However, technical indicators such as the RSI and Stochastic Oscillator suggest overbought territory, with key resistance sitting at $2,431, $2,750, and $2,868.