Over the past two months, Ethereum (ETH) has been trading within a price range of $2,400 to $2,700, despite growing interest from institutional investors.
Current Market Situation of Ethereum
Since early May 2025, Ethereum's price has consolidated between $2,400 and $2,700. The market capitalization of the cryptocurrency is about $304 billion. Despite a recent uptick in demand from institutional investors, Ethereum has not significantly changed its price.
Reasons for Price Consolidation
Ethereum continues to show price stability despite three consecutive months of cash inflow into U.S. spot Ethereum ETFs, according to Coinpedia. Particularly, there has been a net inflow of over $1.4 billion in the last two months. However, the ETH price has dropped more than 8% as of today.
Impact of Short Positions on ETH Price
One reason for the subdued price of ETH is the overheated short positions in futures, especially on the Chicago Mercantile Exchange (CME). Hedge funds and other institutional players have been taking on heavy short bets through CME, with a total value now exceeding $1 billion. These short bets significantly outweigh the overall demand for spot Ethereum ETFs, leading to price suppression.
In these circumstances, Ethereum remains under pressure, hindering its growth despite active engagement from institutional investors. Ongoing monitoring of market developments is necessary.
