Ethereum Hits $4,720 on ETF Inflows, $250M Shorts Liquidate
Ethereum extended its rally from sub-$2,500 in July to a peak of $4,720 on August 13 after breaking the $4,060–$4,300 resistance zone. Robust US spot ETF inflows—peaking at $726.6 million in a single day—combined with record on-chain activity and rising staking participation to drive the surge, attracting major investors such as Ark Invest and Fundamental Global. CryptoQuant data shows the all-exchange Estimated Leverage Ratio at 0.68, near historical highs, while Binance netflows point to potential sell pressure from liquidations and arbitrage. Over $250 million in short positions were liquidated within 24 hours, underlining heightened volatility and liquidation risk. Nonetheless, continued institutional accumulation and upcoming network upgrades Pectra and Fusaka, which promise improved scalability and lower fees, support a broader bullish outlook for Ethereum.
Bullish
Strong spot ETF inflows, which lifted total ETF holdings above 5 million ETH with $726.6 million in daily net inflows, along with record on-chain activity and increased staking, demonstrate robust institutional demand and fundamental strength. The liquidation of over $250 million in short positions and an elevated Estimated Leverage Ratio highlight heightened short-term volatility and liquidation risk. However, sustained capital inflows from major investors and forthcoming network upgrades Pectra and Fusaka—promising improved scalability and lower fees—underpin a bullish medium-to-long-term outlook for Ethereum.