Ethereum Price Rally: Breaks $3,000 Barrier
Ethereum surged past $3,000 on Friday morning, marking its highest price since February 2025. The 8.8% daily increase came after a wave of bullish momentum returned to the market, fueled by a record-setting influx into Ethereum ETFs.
According to data from Farside, Thursday saw $383.1 million in net inflows into ETH-focused exchange-traded funds—the highest single-day amount to date. The price jump signals renewed investor interest in Ethereum after months of lackluster performance.
Ethereum Shorts Liquidated: $258 Million Wiped Out
Ethereum’s sharp rise caught bearish traders off guard, leading to the liquidation of over $258.6 million worth of ETH short positions in just 24 hours, as reported by CoinGlass. These liquidations highlight the risk of trading against strong momentum, especially during volatile shifts fueled by institutional demand. With leveraged traders forced to exit their positions, the upward price momentum further accelerated.
Ethereum ETF Inflows: Institutional Demand Soars
The ETF market played a crucial role in Ethereum’s recent breakout. Thursday’s $383.1 million inflow into ETH ETFs reflects a surge in institutional appetite, surpassing previous records and signaling growing confidence in Ethereum’s long-term value.
These ETFs place ETH into cold custody, reducing liquid supply and creating positive price pressure. Analysts see this as a pivotal moment in Ethereum’s maturation into a mainstream financial asset.
Market Sentiment Shift: From Doubt to Confidence
Just days ago, sentiment around Ethereum was lukewarm. Predictive data from Myriad Market suggested a near 50% chance of ETH dipping to $2,000 before reclaiming $3,000. However, by Friday, sentiment flipped completely—with 100% of predictors forecasting the $3,000 milestone before any significant drop. This rapid reversal underscores the power of ETF-driven flows in altering market narratives.
Bitcoin vs Ethereum: Futures Volume Shake-Up
Ethereum’s rally also impacted derivatives markets. ETH briefly overtook Bitcoin in futures trading volume, hitting $62.1 billion compared to BTC’s $60.4 billion. According to Delta Exchange CEO Pankaj Balani, this signals a growing risk appetite among traders and increasing interest in ETH-based options and futures. The surge in ETH derivatives activity points to expanding participation from both institutional and retail investors.
Crypto Market Rally: Altcoins Join the Surge
Ethereum wasn’t alone in the green. The broader crypto market posted gains of 2.4% according to CoinGecko, with XRP jumping 8.6%, Dogecoin gaining 10.2%, and Cardano rising a notable 15.8%. This synchronous growth across major altcoins reflects a revitalized bullish mood across the digital asset landscape. It also indicates that the rally is not solely driven by Bitcoin, but represents a broader return of capital into the crypto space.
BTC Price Action: ATH Drives Short Liquidations
Bitcoin continued its own record-breaking climb, surpassing $118,667 on Friday after breaching $116,000 a day earlier. Over $678 million in BTC short positions were liquidated, according to CoinGlass. Combined with Ethereum, more than $1.14 billion in total crypto shorts were wiped out within a day. Analysts now believe Bitcoin could rise to $125,000 in the short term, with 67.5% of Myriad Market predictors favoring this outcome over a retracement to $105,000.
Market Outlook: Bullish Momentum Gains Strength
According to Raj Karkara, COO of ZebPay, Ethereum’s rise to $3,014 and Bitcoin’s surge above $118,000 reflect a broader market realignment. “The strength of Bitcoin and Ethereum together signals a broader market alignment and sets the stage for accelerated adoption and deeper integration of crypto into the global financial system,” Karkara noted. With institutional inflows climbing, retail sentiment rebounding, and derivatives volumes hitting new highs, crypto’s bullish momentum looks poised to continue into the coming weeks.
