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Why Ethereum is Going Up? How High Can the ETH Price Go?

Published by
Debashree Patra and Nidhi Kolhapur

Ethereum has skyrocketed over 70% since July 1, adding $150 billion to its market cap. This historic rally was driven by a massive short squeeze, institutional buying from BlackRock and Trump’s financial group, and upcoming U.S. regulatory reforms. With a $9 trillion retirement market on the horizon, Ethereum’s bullish momentum may just be getting started.

Why Did Ethereum Surge 70% in July 2025?

Ethereum is making crypto history with one of the largest short squeezes ever recorded. Since July 1, ETH has gained over 70%, recovering from a period of extreme bearish sentiment and liquidating billions in short positions.

The rally was sparked when net short exposure on Ethereum hit record highs, 25% higher than the February 2025 peak, triggering a wave of forced liquidations as ETH began to rise.

According to The Kobeissi Letter, a further 10% ETH price increase could result in another $1 billion in short liquidations, pushing prices even higher. 

Who’s Buying Ethereum? Trump and BlackRock Lead the Pack

The timing of major institutional purchases suggests the smart money moved first.

  • World Liberty Financial, linked to President Trump, bought $5 million worth of ETH just a day before Kobeissi’s post went viral.
  • BlackRock’s Ethereum ETF has been accumulating ETH for 29 out of the past 30 days—well ahead of the retail crowd.

These actions indicate that institutional players may have anticipated the short squeeze before it fully unfolded.

What Does This Mean for Bitcoin and Other Altcoins?

While Ethereum stole the spotlight, Bitcoin quietly reclaimed the $120,000 level, recovering nearly $900 billion in market cap since April. XRP is also seeing bullish momentum, reflecting a broader capital rotation into altcoins.

“Ethereum could hit $15,000 to $20,000 in this cycle,” says Colin Talks Crypto.

Could a $9 Trillion Retirement Market Push ETH Even Higher?

The most explosive catalyst might still be ahead.

President Trump is expected to sign an executive order allowing 401(k) retirement plans, worth $8.7 trillion, to invest in cryptocurrencies. If passed, this could unlock more than double the capital of the current global crypto market.

This would mark the first time regulated retirement funds could directly allocate to crypto assets like Ethereum and Bitcoin.

What Role Are U.S. Crypto Laws Playing in This Rally?

Ethereum’s rally is not just technical—it’s political and structural.

In July, the U.S. House passed:

  • The Clarity Act – Defines digital asset classifications
  • The Genius Act – Regulates stablecoins
  • The Anti-CBDC Act – Limits the Federal Reserve’s digital currency authority

With bipartisan support now behind these bills, the U.S. crypto market is entering a more mature and regulated phase, creating confidence for long-term institutional involvement.

How High Can Ethereum Go in 2025?

Ethereum previously peaked at $4,800 in 2021. If Colin Talks Crypto’s forecast of $15,000–$20,000 holds, ETH could 3x to 4x from its prior all-time high.

With bullish technicals, growing ETF demand, favorable regulations, and massive capital inflows expected, Ethereum could outpace Bitcoin’s rally in the coming months.

Is This Just the Beginning for Ethereum?

Yes, Ethereum’s breakout isn’t just a squeeze. It signals a larger shift in crypto’s evolution: from retail-driven hype to institution-led growth, backed by regulation and massive capital readiness.

With crypto now entering the retirement market conversation, Ethereum’s path to $15,000 no longer seems like a moonshot; it may be a matter of time.

FAQs

What is causing Ethereum’s current short squeeze?

A massive buildup in leveraged short positions—with net short exposure reportedly 25% higher than earlier this year—has forced billions in liquidations, fueling the parabolic rally 

Why are institutions like BlackRock and Trump’s fund buying ETH?

BlackRock’s Ethereum ETF has been accumulating ETH nearly every day in June–July. Trump’s World Liberty Financial executed a $5 million purchase just before the rally, signaling smart-money anticipation .

Can Ethereum reach $5,000 by the end of 2025?

Many analysts forecast $3,500–$5,000+ by year-end, assuming continued ETF inflows, regulatory clarity, and potential short squeezes

How high could Ethereum go in the next bull cycle?

Some projections go as far as $8,000 in 2025, with others seeing $15,000–$20,000 in a full blow-off rally, backed by institutional and retirement-market capital.

Debashree Patra and Nidhi Kolhapur

Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundary…connect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

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