Ethereum Rallies 6% to US$3,337 as Institutional Interest Surges

Ethereum (ETH) surged by 6% on Thursday morning, trading at US$3,337, as institutional demand through spot exchange-traded funds (ETFs) reached new highs, sparking optimism across the crypto market.

According to data from Farside Investors, Ethereum ETFs saw a daily net inflow of US$256 million, with the lion’s share coming from BlackRock’s iShares Ethereum Trust, which alone recorded US$151.4 million in new investments.

The total assets held across Ethereum ETFs have now surpassed US$13.5 billion, with today marking the 16th consecutive day of positive net inflows. This steady wave of institutional interest is being interpreted by analysts as a potential long-term bullish signal.

Growing Confidence in Ethereum

The renewed investor enthusiasm is being matched by key voices in the crypto space. Former BitMEX CEO Arthur Hayes referred to the current moment as the beginning of “Ethereum Season”, citing the potential revival of decentralised finance (DeFi) and non-fungible token (NFT) ecosystems.

“DeFi and NFTs are deeply rooted in Ethereum’s infrastructure. If capital starts flowing back into these sectors, ETH could be at the centre of the next major crypto cycle,” Hayes wrote on X (formerly Twitter).

Ethereum’s momentum comes amid broader bullish sentiment in the altcoin space, with some traders anticipating a rotation of capital from Bitcoin into Ethereum and other smart-contract platforms, especially as traditional finance continues exploring blockchain exposure via regulated products like ETFs.

Short Squeeze Adds Fuel to the Rally

Adding to the upward pressure was a massive liquidation event worth US$310 million, primarily from overleveraged long positions. Interestingly, 72% of the liquidated trades were long, which suggests that the sharp move higher triggered a classic short squeeze, forcing traders who were betting against the asset to cover their positions by buying back Ethereum — thus driving the price even higher.

Market analysts say the short squeeze, combined with ETF-driven demand, created a perfect storm for Ethereum’s rally.

What’s Next for Ethereum?

Despite today’s rally, Ethereum is still trading below its 2021 all-time high of nearly US$4,900. However, the recent surge in institutional interest — particularly from legacy financial players like BlackRock — is being seen as a sign of growing legitimacy for ETH as a digital asset class.

With Ethereum ETFs now commanding a substantial share of capital inflow and narratives like “Ethereum Season” gaining traction, many believe the network is entering a pivotal phase.

Still, some caution that volatility remains high, especially with macroeconomic uncertainty and regulation continuing to loom over crypto markets.

For now, Ethereum bulls appear firmly in control.