Ether (ETH) has recently experienced a notable surge in price, reaching a 15-week high and sparking discussions about whether it can surpass the $3,000 mark. This rally has been fueled, in part, by substantial short liquidations, totaling $1.8 billion, leaving investors and analysts speculating on the sustainability of this upward trend.
Several factors contribute to Ether's recent price appreciation. On June 10, 2025, Ether's price was trading above $2,680, marking a 7% increase in 24 hours. This surge was supported by a significant jump in daily trading volume, which rose by 114% to $26.5 billion, indicating strong demand-side activity. Furthermore, global Ethereum-based investment products have seen consistent positive momentum, with net inflows of $295.4 million last week, marking the seventh consecutive week of inflows totaling $1.5 billion.
The derivatives market also plays a crucial role. Open interest (OI) in Ether futures has risen by 12.7% in the last 24 hours, reaching a record $39.22 billion on June 10. Major exchanges like Binance, Gate.io, Bybit, and Bitget control over 51% of the market, while the Chicago Mercantile Exchange (CME) holds 7.4% of ETH open interest. Positive funding rates in ETH perpetual futures markets further support this uptrend, increasing to 0.0070% on June 10 from 0.0026% over the previous 48 hours.
However, Ether has struggled to break above the $2,800 mark over the past month. This resistance level has coincided with an increased use of downside protection strategies in ETH derivatives markets. Despite the rally, some traders are using bearish options strategies to hedge against potential losses, especially after Ether's 49% price increase in May.
Technical analysis suggests a bullish outlook. Ether's price action resembles a cup-and-handle pattern, a bullish technical setup. A decisive daily candlestick close above the neckline could lead the Ether price to confront resistance at the $3,000 range high. Breaking this barrier would clear the path toward the technical target of the prevailing chart pattern above $4,100.
On May 9, 2025, a substantial short squeeze occurred, leading to nearly $1 billion in crypto liquidations, with $834 million attributed to short liquidations. Ether rallied above the $2,000 psychological level for the first time since early March, triggering $259 million in short liquidations. This event underscores the impact of short squeezes on Ether's price dynamics.
Despite the overall positive sentiment, some caution is warranted. Ether has consistently struggled to break above the $2,800 mark over the past month and traders are using bearish ETH options to hedge. Moreover, there are concerns that the potential approval of exchange-traded funds (ETFs) for rival altcoins by the U.S. Securities and Exchange Commission could negatively impact ETH's market dominance and price action.
