Ethereum Surges to New High as ETF Buyers and Short Sellers Fuel Rally

Ethereum's price surged to nearly $2,546 on Saturday afternoon, reaching a weekly high as exchange-traded fund (ETF) buyers and short sellers fueled the rally. The ETH/USD pair rose 29.8% over the past seven days, outperforming Bitcoin's 22.9% gain during the same period.

The surge in price was driven by returning ETF buyers, who poured $697 million into spot Ethereum ETFs for the week, according to data from Sosovalue. Blackrock's ETHA and Grayscale Mini ETH were among the top recipients of this influx of capital.

However, the rally slammed into a market with less ETH available on exchanges, with exchange-held ethereum dropping 15% from early June to mid-August. This reduction in supply has contributed to the price increase, as buyers have had fewer options for selling their Ethereum holdings.