Ethereum (ETH) Price Rally: Short Squeeze & Surging Demand Fuel the Fire—How High Can It Go?

Ethereum isn’t just climbing—it’s gunning for the stratosphere. A brutal short squeeze meets ravenous buyer demand, and the charts are screaming bullish. Here’s the breakdown.

Short sellers? Crushed. The ETH rally has turned into a revenge tour against bearish bets, with liquidations piling up faster than Wall Street apologies. Meanwhile, institutional money is flooding in—because nothing wakes up trad-fi like FOMO.

The real kicker? This isn’t just hype. Network upgrades and defi momentum are doing the heavy lifting, while speculators scramble for seats. Even the 'smart money' is now just chasing retail.

Will the surge hold? If history’s any guide—yes, until it doesn’t. Crypto moves fast, and today’s rally is tomorrow’s 'remember when.' Buckle up.

Key Insights:

• Ethereum’s short squeeze pushed Ethereum (ETH) price to $3,837 with a 2.86% surge on strong 5-minute bullish candles.
• First-time ETH buyer supply grew ~16% since early July, indicating renewed inflows and demand.
• ETH/BTC shows a bullish pennant, suggesting Ethereum may outperform Bitcoin if the breakout confirms.

Ethereum (ETH) price experienced a bullish trend, where market forces and a change in investor behaviour caused an increase.

In a single day of trading, ETH gained 2.9%, pushing the price up to $3,837.

A surge in whale transactions, new investor interest, and bullish structural patterns coupled this movement.

Ethereum Price Short Squeeze Fuels Immediate Price Spike

Notably, a short squeeze occurred on the ETH/USDT pair, resulting in a rapid 2.9% price increase.

The five-minute candlestick chart displayed a series of bullish green candles, pushing ethereum price from around $3,756 to $3,837.

Consequently, this action pushed the short sellers to cover their shorts, speeding up the buy orders and aiding the rise.

Buyers noticed that the price had been moving beyond the recent intraday points of resistance, a sign of bullish control.

With the liquidation of shorts in motion, the price action became aggressive. The immediate resistance break indicated that ethereum was on a new wave of gains, entailed by high-frequency liquidations and augmented spot purchases.

New Buyer Demand Shows Sharp Increase Since July

On-chain data from Glassnode indicated a measurable shift in Ethereum ownership dynamics. Since the beginning of July, the amount of ETH held by first-time buyers has increased by approximately 16%.

This rise suggested a renewed entry of fresh capital into the Ethereum market, diverging from earlier periods of accumulation by long-term holders.

The ETH supply held by first-time investors had steadily declined in the first half of the year but began to reverse in mid-June.

By mid-July, the indicator was moving in a bullish direction, signaling an upswing in the number of new entrants into the market.

This inflow can help sustain demand pressure, which may slow the price momentum in the coming weeks.

ETH/BTC Pair Structure Signals Breakout

More so, technical patterns on the ETH/BTC hourly chart indicate continuation pennant at the 0.032 mark.

Earlier scenarios of consolidation on the same chart led to bullish Ethereum price breakout, and every time a triangle was formed, it was followed by a leg-up.

The current trend was also on the same path, developing following an upward vertical price movement.

At the time of writing, the ETH/BTC ratio was approximately 0.032208, and in case the pennant formation breaks at higher levels, Ethereum may overpower Bitcoin in the short run.

Such formations are often a precursor to larger structural movements, especially when market-wide capital begins rotating into ETH from BTC during altcoin cycles.

ETH Whale Activity Surges With $18 Billion in Transfers

Meanwhile, IntoTheBlock on-chain metrics shared by analyst Ali Martinez indicated that whale activity on the Ethereum network has grown significantly.

In the last 24 hours, over $18.25 Billion of large transactions were registered.

It is the greatest one-day trading volume with large accounts within the previous seven days, and occurred when Ethereum price was trading at around $3420.

The volume surge aligned with a larger rally in price levels and showed involvement of high-net-worth wallets or institutional accounts.

More so, these transactions may be linked to portfolio rebalancing, new positioning, or internal transfers.

Regardless of their origin, such volume tends to align with periods of elevated volatility and directional movement.

Further supporting bullish sentiments, recent analysis from Arthur Hayes noted Ethereum sharp rise, institutional activity, and whale transactions exceeding $18 Billion.

With ETH price gaining over 47% in a month and nearing the $4,000 milestone, Hayes forecasted a surge to 10K.