Here Is the Main Reason Why Ethereum Price Remains Choppy Amid High Spot ETF Demand

Ethereum’s price remains stuck between $2,400 and $2,700, despite high demand for spot ETFs from institutional investors like BlackRock. Over $1.4 billion has been infused into U.S. spot Ether ETFs in recent months, and centralized exchange supply has fallen to 14.77 million coins. However, significant short positions on the CME are pressuring prices downward, keeping ETH from spiking.

Since early May 2025, the price of Ethereum (ETH) has been caught in a narrow trading range, fluctuating between $2,400 and $2,700. This large-cap cryptocurrency boasts a fully diluted market valuation around $304 billion. Yet, despite noticeable interest from institutional investors, it hasn’t been able to leverage this momentum into a price surge.

Coinpedia reports that U.S. spot Ether ETFs, particularly those led by BlackRock’s ETHA, have seen notable cash inflows for three months running. Over the past two months alone, these ETFs have attracted over $1.4 billion in net cash inflows, an activity that normally would suggest a bullish trend. However, Ethereum’s price remains stuck in the consolidation phase.

Interestingly, while institutional appetite for Ethereum grows, the total supply of Ether on centralized exchanges has seen a steady decline. It’s now down to around 14.77 million coins as of the latest figures. One would expect the price to respond positively to such decreased supply, but that hasn’t happened.

So, what’s dragging the price down? Contrary to the positive signals, Ethereum has been facing pressure from a significant volume of short positions. In particular, the Chicago Mercantile Exchange (CME) has seen hedge funds and institutional players engage in heavy short selling, amounting to over $1 billion. This has recently played a major role in keeping Ethereum’s price from rising.

In the past week, there’s been a decline in ETH price of more than 8 percent. As of late Wednesday during the North American session, Ethereum was trading around $2,529. The mounting short positions act as a heavy counterforce against the demand created by the inflow into spot ETFs, leading to a continued suppression of the ETH price, despite increasing institutional interest in the asset.