Last week, Ethereum (ETH) showed significant growth, closing above $3,600. This rise was fueled by rapid liquidation of short positions and bullish sentiment in the options market.
Overview of Ethereum's Growth
Ethereum gained over 20% on a weekly basis and could test the $4,000 level by the July 25 options expiry. According to Coinglass, approximately $136 million worth of ETH short positions were liquidated in the last 24 hours.
Market and Investor Sentiment
Dr. Sean Dawson, research director at Derive.xyz, described this increase as a "structural regime shift", noting that investors are aggressively positioning for a rapid rise to $4,000. Approximately 25% of ETH options traded on the Derive platform since Wednesday are focused on the $3,000-$4,000 levels.
Regulation and Overall Crypto Market Status
Regulatory developments in the U.S. also contributed to the overall rally. The total crypto market capitalization surpassed $4 trillion for the first time. Legislation like the GENIUS Act and the Clarity Act is viewed as paving the way for clearer cryptocurrency regulations.
The indicators of Ethereum's growth and the changes in regulation are creating an evolution in the crypto markets, opening up new opportunities for investors.
