Ethereum Just Exploded 11% – What’s Next?
Ethereum surges 11%, breaking $1,700, as CME shorts drop and bullish sentiment gains momentum fast.
Ethereum surged 11.19% on Tuesday, breaking past the critical $1,700 resistance level for the first time since April 6. As of Wednesday, ETH continues its bullish momentum, trading near $1,780. The rally is underpinned by a favorable shift in macroeconomic sentiment and a significant drop in CME short positions—fueling renewed interest in a bullish Ethereum price prediction among traders and analysts.
A key technical indicator, the Relative Strength Index (RSI), currently stands at 54—above the neutral 50 mark—suggesting that bullish momentum is gaining traction. If the uptrend holds, ETH could next target resistance at $1,861. However, a correction could see the price drop back toward daily support at $1,449.
One of the primary drivers behind this rally is the steep decline in Ethereum short positions on the Chicago Mercantile Exchange (CME). For the first time in 2025, total ETH short interest across all trader categories has dropped below $500 million. This shift aligns with a broader drop in the Ethereum CME basis—from 20% in November to just 4–5% in April.
Also Read: Synthetix Price Prediction 2025, 2026 – 2030
The earlier 20% basis, which exceeded U.S. Treasury yields, led hedge funds to engage in arbitrage by buying spot ETH ETFs and shorting ETH futures. But following Trump's tariff announcement and the Federal Reserve's hawkish stance, both crypto and traditional markets corrected sharply. Arbitrageurs exited these trades, dumping ETH ETF shares and contributing to nearly $1 billion in net outflows since mid-February.
With CME shorts reduced and arbitrage pressure easing, ETH is regaining breathing room. Still, analysts caution that sustained bullish momentum will depend on further macroeconomic clarity. Comments from U.S. Treasury Secretary Scott Bessent hinting at easing U.S.-China tensions may offer just the boost Ethereum needs for its next leg upward.
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