Ethereum nears $4000 amid liquidations and inflows into ETFs

Ethereum continued its upward movement, breaking the $3600 level. According to CoinGecko, the asset is trading at $3616 at the time of publication, having gained 5.2% over the day. Over the week, the price rose more than 20%, helped by the liquidation of short positions worth $128 mln, according to Coinglass, as well as increased demand for call options.

Derive.xyz researcher Sean Dawson called what is happening a “regime change” and noted that traders are actively targeting $4000. He puts the probability of reaching that mark by the end of July at 14% and $5000 by the end of 2025 at 27%.

The positivity from U.S. regulators and the advancement of cryptocurrency bills spurred demand from institutional investors. BRN analyst Valentin Fournier said that spot Ethereum-ETFs raised $602 million overnight, while bitcoin funds raised $523 million. He noted that the Fear and Greed Index is at 71, signaling positive sentiment but not overheating.

According to a CryptoQuant analyst under the nickname Crypto Dan, there is a premium to the market price of ETH on Coinbase, indicating active buying by large US investors. He added that the market is far from euphoric yet, but if the wave of demand continues into the second half of 2025, it could indicate overbought conditions.