Ethereum (ETH) has demonstrated significant strength over the past 24 hours, climbing an impressive 6.3% and breaking past the crucial $2,800 mark. This surge, according to CoinMarketCap data, is being fueled by a combination of positive technical indicators, mounting speculation around a new Crypto ETF, and a powerful short squeeze.
ETF Speculation and Technical Breakout Fuel the Rally
The recent price jump for Ethereum closely follows reports of a proposed Crypto ETF backed by President Donald Trump. This news has acted as a significant catalyst, aligning perfectly with several bullish technical formations.
On the charts, a golden cross pattern has emerged, where the 7-day Exponential Moving Average (EMA) has crossed above the 30-day EMA. This is typically viewed as a strong bullish signal, suggesting upward price momentum. Additionally, a bullish pennant formation has been observed, another pattern historically linked to upward price breakouts.
Further confirming the bullish sentiment, key indicators are flashing green. The MACD histogram stands at a robust +27.62, indicating strong upward momentum. The RSI14 (Relative Strength Index over 14 periods) is at 65.18, signaling strong bullish momentum without yet entering overbought territory, suggesting there might be more room for growth.
Short Squeeze and Altcoin Rotation Accelerate the Climb
Ethereum’s performance has not only surpassed Bitcoin’s (+2.3%) and the broader crypto market’s (+2.76%) but also triggered a wave of liquidations. Over $16.2 million in ETH short positions were wiped out after the $2,800 resistance level was breached. This short squeeze created a cascade of forced buybacks, further propelling the price upward.
The derivatives market is also showing renewed bullish appetite, with open interest rising 5.73% in the past 24 hours. Funding rates for perpetual contracts have turned positive, indicating that traders are increasingly willing to pay a premium to hold leveraged long positions. This rally is also supported by a broader sector rotation favoring altcoins, with capital flowing into cryptocurrencies other than Bitcoin.
What’s Next: Key Level at $2,698 and Target at $3,350
While the Trump-linked ETF still awaits regulatory approval, the technical market structure for Ethereum remains robust. If Ethereum can hold above the $2,698 level, which represents the 23.6% Fibonacci retracement, it could pave the way for a significant move towards a new target of $3,350. This target aligns with the 161.8% Fibonacci extension, a level often eyed by traders for potential price objectives during strong uptrends.
Will Ethereum maintain its momentum and reach this ambitious target, or will regulatory hurdles for the proposed ETF introduce new volatility?
July 2025, Cryptoniteuae
