Ethereum Price Eyes $3,500 Amid $303M Short Squeeze and ETF Inflows

Ethereum’s price is on the rise, currently around $2,640, with bullish movements after significant institutional buy-in. Recent data suggests major purchases from firms like BlackRock and Galaxy Digital boosting confidence in the market. If Ethereum breaks above $2,708, it could lead to liquidations of approximately $303 million in short positions, pushing prices further. Technical indicators and positive investor sentiment make a push towards $3,500 a hopeful yet plausible target for the near future.

Ethereum’s price is gaining traction, recently breaking out of a falling channel and forming what appears to be a bullish continuation flag. Large purchases by institutions have bolstered optimism in the market, with BlackRock and Galaxy Digital reportedly acquiring an impressive $360 million worth of ETH through over-the-counter (OTC) deals and ETFs. Should the price surge past $2,708, analysts predict the liquidation of $303 million in short positions, potentially propelling the price upward.

The current price of Ethereum sits around $2,640, reflecting a modest increase of 1.3% during the day. Notably, recent data highlights active whale buying, with significant figures suggesting that institutions are establishing long positions rather than merely indulging in short trades. Also, as positions held by short-sellers continue to decrease, there is a burgeoning confidence in the market, indicated by rising long positions.

A recent report from the on-chain tracker Lookonchain reveals that a whale acquired 108,278 ETH, which equals about $283 million, through an OTC transfer. This large purchase follows a noticeable withdrawal of 89,000 ETH from exchanges by Galaxy Digital. The massive wallet now holds around 139,476 ETH, valued at approximately $365 million. Additionally, on June 3, BlackRock added 29,580 ETH to its portfolio, raising its total ETH holdings to over $4 billion.

The fact that these occurrences are happening amidst growing demand for ETFs suggests confidence among institutional investors in Ethereum’s long-term potential. An increase in on-the-ground trading activity can often signal a shift toward long-term positions. Lowering amounts of ETH held on exchanges could, in turn, squeeze liquidity and ultimately drive the price higher, a phenomenon many investors are keenly attentive to.

From a technical standpoint, reports from Bitconsensus indicate that ETH recently escaped a long-standing falling channel that had prevailed since early 2025. This breakout comes on the heels of a bullish engulfing candle that confirmed a reversal in trend. Currently, Ethereum is forming a bull flag pattern, seen positively by many technical analysts, who often interpret it as a bullish continuation setup. If this pattern maintains its integrity, a rise towards the $3,500 price target may be forthcoming.

This target level, previously a strong point of resistance, stands out as significant for traders. Should the ETH price successfully breach the current bull flag arrangement, it might attract further institutional investment as ETF momentum continues to build. As buying pressure strengthens, more technical levels are being drawn attention to as possible hurdles.

Market data currently shows that short positions in Ethereum are considerably stacked. Should the price approach $2,708, those short positions could feel the pressure and trigger a liquidation event of more than $303 million. Such an event could intensify market activity, pushing prices higher as traders scramble to adjust their positions. Indeed, the sentiment seems predominantly bullish as the number of long positions outweighs the shorts.

At this moment, Ethereum remains comfortably above $2,625, with a market capitalisation of around $316.94 billion. It bounced back from lows near $2,590, continuing a series of higher intraday highs, a sure sign of positive momentum. Moreover, trading volumes are holding steady around $16.5 billion, and pairs with BTC are stabilising. In light of decreasing supply on exchanges combined with institutional accumulation, short- to medium-term expectations for the ETH price lean towards the bullish side. The path forward appears robust, with attention on key resistance at $2,708 and $2,850 after that, towards a major target of $3,500.

Moses K is a crypto journalist with extensive coverage in markets, blockchain trends, and regulation. His work spans across multiple publications including The Coin Republic, Coinchapter, and Cryptopolitan. Known for his clear and data-focused writing, he focuses primarily on price analysis and emerging policies affecting the world of digital assets.