Update: Shortly after publishing this article, Ethereum surged even more, climbing above $3350.
Ethereum is seeing its strongest rally in months. The price has surged above $3,200, gaining over 7% in the last 24 hours and 23% over the past week. Over the last three months, ETH has more than doubled, continuing a sharp rebound that began after the launch of the long-delayed Pectra upgrade in early May.
After falling below $1,500 earlier this year, Ethereum’s recent performance stands out even among other major cryptocurrencies. Bitcoin is up 2% today and XRP about 4%, but Ethereum has outpaced both by a wide margin.
Institutional Demand and Staking Pressure
One major driver of the price action is increased institutional activity. Companies such as Sharplink Gaming and GameSquare have built large ETH treasuries. Sharplink now holds over 280,000 ETH – more than the Ethereum Foundation itself – and stakes nearly all of it. GameSquare and BitMine are pursuing higher-yield DeFi strategies, while Trump-affiliated World Liberty Financial has also expanded its ETH holdings.
ETF inflows are also contributing to upward pressure. U.S. Ethereum ETFs saw nearly $1 billion in new inflows this past week – their best week since launch. Some investors are now watching for potential regulatory approval for ETH staking within ETF structures.
Short Squeeze and Market Structure
A large number of short positions on ETH futures were recently liquidated, triggering a rapid upward move. Funding rates have flipped positive, and open interest on futures markets has risen, suggesting increased confidence from traders betting on further gains.
Currently, over 29% of Ethereum’s total supply is locked in staking contracts. With corporate treasuries and ETFs adding to this, the liquid supply is shrinking – a trend that historically supports higher prices.
Read also: Fusaka Upgrade: What’s Next for Ethereum After Pectra?
Technical Outlook
Ethereum’s next technical resistance levels are around $3,300 and $3,600. A move past these could open the door for a retest of $4,000 – a price last seen at the end of 2024. Ethereum still remains about 32% below its all-time high of $4,878.
While some of the current rally may be influenced by overall market momentum, especially after Bitcoin’s recent all-time high, Ethereum appears to be gaining strength independently – driven by network upgrades, treasury accumulation, and strong institutional interest.
