Ethereum (ETH) has broken through the critical $3,500 psychological barrier, rallying 16% since July 14th and reaching weekly gains exceeding 23%. The surge follows ETH's successful defense of the $3,000 support level earlier in the week, with daily peaks hitting 7.7% growth.
Key drivers include massive short liquidations on Binance, where daily forced closures repeatedly exceeded $20 million – including spikes of $32M and $35M – creating compounding buy pressure as bearish positions unwound. This marks a reversal from April's long liquidation dominance, with multiple short squeezes occurring since May.
Fundamental support comes from institutional adoption: Top 10 corporations hold 1.6M ETH ($5B), led by SharpLink's 280.6k ETH reserves. Spot ETF inflows provide steady demand while falling exchange reserves signal accumulation for long-term holding. Concurrently, Open Interest has risen to cycle highs alongside price gains.
Technical indicators reinforce bullish momentum: Binance's Taker Buy/Sell Ratio crossed above 1.00, reflecting dominant buy-side pressure, while volatility surged to 261.5. However, hourly charts show resistance at $3,478 triggering pullbacks. Mid-term prospects hinge on daily closes above $3,425, with sustained momentum potentially targeting $3,750-$4,000.