The Ethereum price is once again at the center of attention as a wave of bullish signals has emerged, raising odds for a rally soon. This optimism is due to advanced institutional interest and on-chain metrics reflecting whale accumulation.

The current bullish sentiment has boosted market-wide sentiment, and analysts are eyeing a breakout towards $3,500 in the short term. 

BlackRock Buys, Whale Wallets Expand

According to CryptoGoos, BlackRock reportedly bought $100 million worth of Ethereum in the past 7 days, which clearly shows aggressive purchases by the world’s largest asset manager. This signals renewed institutional conviction in ETH’s future.

Backing this up, on-chain data displayed by Santiment also reveals a steady advancement in the holdings by wallet addresses with 1,000 to 100,000 ETH, indicating mid- to large-sized whales have been accumulating since mid-May. 

Also, as of early July, these addresses continue to rise, suggesting a consistent rise in confidence.

Record Shorts Could Trigger a Squeeze

Interestingly, while accumulation surges, speculators on CME have built one of the largest short ETH futures positions in history, according to Barchart. This extreme bearish positioning has caught the attention of analysts who are now raising odds of a possible short squeeze scenario.

Quinten Francois adds further fuel to this view, pointing to a surge in Ethereum adoption and inflows via bridged assets and stablecoin usage on Artemis. This growing demand, with overloaded short positioning, creates the perfect setup for a forced short-covering rally.

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Box Breakout in Play: $3,500 on the Horizon?

Technically, Ethereum has been stuck in a sideways “box range” for weeks, but momentum is shifting. According to Mister Crypto, ETH recently performed a liquidity sweep below the box range, often a precursor to a breakout in the opposite direction.

He believes a breakout from the upper box border near $2,500 could launch ETH toward $3,500 in the short term.

This sentiment is echoed by Ted Pillows, who notes Ethereum is “flipping $2,500 resistance into support.”

Marcus Corvinus takes it further, setting sights beyond $3,500, should the $2,500 mark hold.

Combined with BlackRock’s recent buy and whale wallet growth, these chart signals are gaining credibility.