On July 27, Ethereum surged 4.5%, climbing to $1,980 on Bitstamp and nearing the $2,000 mark for the first time since early June.
The jump added over $100 within 24 hours and boosted Ethereum’s market cap to $237 billion, pushing its weekly gains close to 6%.
This rally erased losses that began on July 22 when ETH fell below $1,900, signaling renewed strength in the market.
Bears felt the heat: short positions on Ethereum lost $113 million in just one day, a staggering figure compared to $10 million lost on long bets.
Coinglass data shows that these ETH short liquidations made up about a third of all shorts closed during this period across cryptocurrencies.
Institutional interest played a big role. Spot ETH ETFs recorded inflows totaling nearly $104 million between July 20 and 24, reflecting strong buying from institutional investors.
Contributing to the positive momentum was Circle’s recent approval from the U.S. Office of the Comptroller of the Currency, allowing it to operate a national trust bank.
This matters because Circle’s USDC stablecoin primarily uses Ethereum as its settlement layer, and federal oversight reduces regulatory uncertainty for institutional players.
Experts believe this regulatory endorsement will enhance liquidity and accelerate enterprise adoption within Ethereum’s decentralized finance ecosystem.
Meanwhile, Ethereum’s network health is improving as its validator exit queue has cleared, eliminating exit delays for staked ETH.
This means capital can flow into and out of staking without obstacles, reassuring investors about liquidity and network stability.
Bitmine boosting ETH holdings signals growing confidence among large holders, adding to the bullish atmosphere.
Some technical analysts warn that ETH might dip toward $1,300 before gaining strong momentum to reach long-term targets near $3,950.
