- Ethereum jumped 70% in July after shorts hit a record high.
- BlackRock and Trump-linked firms quietly loaded up on ETH.
- U.S. policy shift may open retirement funds to crypto.
Ethereum’s price just made history. After weeks of silence, it suddenly surged 70% in less than a month, gaining over $150 billion in market cap. What triggered this? A massive short squeeze.
As July began, net short positions on Ethereum reached a record high, according to data shared by Zerohedge. In fact, short exposure was over 25% higher than in February 2025. These weren’t small-time bets either; a large portion came from institutions using leverage. But when the price began to rise, it forced those short sellers to cover their positions, adding more fuel to the rally.
Ethereum didn’t climb slowly. It sprinted. With every jump in price, more short positions got liquidated. If it rises another 10%, another $1 billion in shorts could be wiped out. This is one of the biggest squeezes the crypto space has seen in years.
Also Read: Ethereum ETFs Are In, Meme Tokens Expected to Surge 1,825% in Q3 of 2025
Ethereum and Ripple Finally Wake Up
While prices dipped earlier in the month, the big players were buying quietly. BlackRock’s Ethereum ETF made steady purchases, adding ETH on 29 out of 30 days heading into July. At the same time, prices stayed low. Now it seems likely that someone knew this rally was coming and was loading up.
Then came a surprising move from a Trump-linked company. Just a day before Ethereum took off, World Liberty Financial, associated with Donald Trump, bought $5 million worth of ETH. That helped kick the rally into high gear.
Ripple has also started climbing, showing similar strength. And Bitcoin? It’s now back at $120,000, having gained $900 billion in market cap since April. For months, Ethereum and Ripple lagged behind, but now they’re catching up fast.
New Crypto Rules Could Change Everything
Crypto’s rally isn’t just about charts. U.S. lawmakers are moving fast, too. According to reports, President Trump could sign an executive order allowing 401k retirement accounts to invest in crypto. That’s a game changer. Right now, U.S. 401k holds about $8.7 trillion. That’s more than double the size of the entire crypto market.
And that’s not all. This week, the U.S. House passed three major crypto bills: the Clarity Act, the Genius Act, and the Anti-CBDC Act. Together, they’re helping build a solid legal foundation for the industry. More importantly, crypto now has support from both sides of the political aisle. That wasn’t the case just a year ago.
Also Read: Ethereum Hits 2025 Highs: Are Whales and ETFs Behind the Breakout?
