MARKET ANALYSIS | Ethereum Market Cap Grows By Over $150 Billion So Far in July 2025 as Inflows Top $2 Billion

Ethereum (ETH) is in the midst of a historic rally, powered by unprecedented institutional inflows into U.S. spot ETFs and a massive short squeeze that has forced bearish traders to unwind billions of dollars in positions.

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TL;DR

* ETH ETFs have attracted over $2 billion in July 2025 inflows – a record pace

• Over $136 million in shorts were liquidated in one day; more than $1 billion could follow
• Market cap has grown ~$150 billion in 3 weeks, now approaching $515 billion
• ETH is up 40% in July 2025 and approaching $4,000
• Still 36% below its $4,867 ATH from November 2021

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Record Inflows Signal Institutional Confidence

Ethereum ETFs have taken off in July, following their launch earlier this month. Recent data shows:

• 🔹 $726 million in a single day (July 16 2025), mostly from BlackRock and Fidelity
• 🔹 Over $908 million in total inflows during the week ending July 11
• 🔹 More than $2 billion in cumulative inflows since early July

This represents the strongest weekly performance since ETH ETFs began trading – outpacing even the early days of Bitcoin spot ETFs earlier in 2024.

The surge in inflows suggests deepening institutional conviction in Ethereum’s role beyond a speculative asset — as the foundation for decentralized finance (DeFi), tokenization, and smart contract infrastructure.

A Historic Short Squeeze is Driving Prices Up

In parallel with the ETF-driven buying, Ethereum is experiencing one of the most aggressive short squeezes in its history:

• Over $136 million in short liquidations occurred within 24 hours, pushing ETH past $3,600
• Analysts estimate that a further 10% rally could wipe out $1 billion in additional shorts
• Since July 1, Ethereum’s market cap has grown from approximately $365 billion to $515 billion – a gain of ~$150 billion in under three weeks

Short squeezes occur when traders betting against an asset are forced to buy back in as prices rise – creating a feedback loop that accelerates gains.

This phenomenon has been turbocharged by ETF inflows, creating a self-reinforcing rally as sellers get liquidated and buyers keep accumulating.

Ethereum Up 40% in July 2025 – All-Time High in Sight?

As of mid-July 2025:

• ETH is up over 40% month-to-date, trading above $3,700 as of this writing
• Weekly gains stand at ~20%, among the strongest in 2025
• Technical resistance levels at $3,000 and $3,300 have been decisively broken
• Analysts are now targeting $3,800 – $4,000, with some options traders positioning around a $4,000 strike for the July 25 expiry

While Ethereum still trades ~36% below its November 2021 all-time high of $4,867, the current rally marks a strong return to bullish momentum – and opens up the possibility of revisiting ATH territory by Q3 2025.

While these movements are largely driven by Western institutional flows, the ripple effects are felt globally.

As Ethereum continues its climb, all eyes are on the $4,000 threshold – a key psychological and technical level that could set the tone for the second half of 2025.

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