- Ethereum clears $2,600 with rising volume, sparking fresh bullish sentiment.
- Short pressure builds as ETH invalidates bearish setups with strong candles.
- Price holds above $2,575 as buyers dominate, fueled by high institutional flow.
Ethereum surged past $2,600 after jumping 8.1% in 24 hours. The move followed strong momentum, rising volume, and a key breakout above $2,575 during July 3 trading.
Strong Surge Clears Key Resistance Level
Ethereum’s price move has been sharp and deliberate. The cryptocurrency cleared the psychological $2,500 level after days of sideways action and printed a new local high above $2,600. Price action has turned bullish, supported by technical structure and growing confidence among institutional players.
Source: CoinGecko
After the breakout phase, Ethereum printed clear higher lows and strong green candles with increasing volume. Each candle reflected building pressure from buyers, especially as volume touched $22.7 billion in the last 24 hours. Ethereum now trades at $2,605.84, placing it firmly at the 2nd spot by market cap.
The volume strength is not just surface-level. Ethereum’s total circulating supply remains locked at 120.7 million tokens, aligning with its total supply. This adds weight to the current rally by removing inflationary uncertainty. The network’s proof-of-stake model continues to support this capped emission trend.
Short Squeeze Pressure Builds on Futures Data
Ethereum’s rally comes at a time when short exposure among hedge funds is reaching aggressive levels. The CME futures chart shared by Crypto Rover shows leveraged short positioning has grown steadily since early 2023. Deep red bars representing short money peaked between January and May 2025, aligning with Ethereum’s previous consolidations.
Source: CryptoRover on (X)
Ethereum’s breakout now threatens those positions. Price strength above $2,575 invalidates the earlier bearish setups, creating the conditions for a large-scale short squeeze. Ethereum is also gaining ground in BTC terms, now valued at 0.02382 BTC, up 4.5% in relative strength.
This shift also reflects a sentiment flip. While shorts dominated throughout Q1, the price structure has since flipped into higher lows and demand-led rallies. Each recovery has shown stronger support zones and deeper exhaustion from sellers.
This brings into play a potential volatility spike. As price gains speed, any continuation above $2,650 could force further exits by short traders. Ethereum’s supply structure and visible strength across spot and futures add weight to this setup.
Ethereum has already logged 21 distinct buy entries this year, with newer institutions treating ETH as proxy exposure. With this level of rotation and buying activity, the structure favors buyers unless short interest unwinds aggressively. Ethereum now sits in a bullish setup with real continuation potential if volume and structure hold.
