Ethereum 
$2,332 recently experienced a significant price increase, surpassing the $3,600 mark, partly due to a series of short position liquidations. Data from the derivatives exchange Derive indicates aggressive activity among investors who are acquiring call options with a $4,000 strike price, set to expire on July 25th. Dr. Sean Dawson, the research director at Derive, describes this price movement as indicative of a trend shift, emphasizing that approximately $136 million worth of short positions were liquidated within the last 24 hours. Experts believe this pressure could propel Ethereum’s price to $4,000 shortly.
Short Position Liquidations Propel ETH Prices Higher
Since Wednesday, about a quarter of Ethereum’s volume on Derive has concentrated on call options within the $3,000‑$4,000 range. Approximately 8% of open positions are aligned with a $4,000 strike price. Dawson calculates the probability of reaching this level by the end of July at 14%. Meanwhile, the scenario of Ethereum hitting $5,000 by the end of 2025 has increased to a 27% likelihood.
Data from Coinglass reflects that following the $136 million Ethereum short positions’ liquidation, prices surged rapidly. “Bitcoin 
$78,302 is involved, but the rally is led by Ethereum,” Dawson remarked, underscoring that technical structure, options flow, and liquidations signify a fundamental repositioning shift.
Regulatory Support and Institutional Interest Strengthen the Rally
The U.S. Congress advancing the GENIUS Act with cryptocurrency regulations to Trump’s desk and the Clarity Act to the Senate have bolstered market anticipations for a regulatory framework. The total market capitalization reached $4 trillion for the first time. On the same day, SoSoValue reported that spot Bitcoin ETFs saw an inflow of $523 million, while Ethereum ETFs received a net inflow of $602 million. In all respects, ETH directly powers the current rally.
Valentin Fournier, an analyst at BRN, notes that while the market shows signs of heating up, institutional inflows support the main trend. The Crypto Fear and Greed Index stands at 71/100, still below the threshold of euphoria. With Bitcoin settling just below $120,000, Glassnode reports the next significant resistance is around $136,000.
