Ethereum (ETH) has surged strongly over the past two days, primarily driven by a massive influx of institutional capital, improved market sentiment, and large-scale short liquidations. In simple terms, it's "money arrived, outlook changed, and people were forced to buy at higher prices." Here are the specific reasons:

· 💰 Strong institutional capital inflows: This is the most direct catalyst. Last week, the US Ethereum spot ETF saw net inflows of approximately $160 million, marking the largest single-week volume since mid-January. Notably, BlackRock's Ethereum staking ETF (ETHB) attracted over $45 million within two days of launch. Additionally, the publicly listed company Bitmine purchased approximately 122,000 ETH (about $280 million) over the past two weeks.
· 🌍 Improved macroeconomic sentiment: Middle East geopolitical risks showed signs of easing (such as reports of the US developing an "exit option"), boosting global risk asset appetite, with the crypto market emerging as a major beneficiary.
· ⚡ Market structure changes: Over the past 24 hours, the entire network liquidated $568 million in positions (with nearly 80% being short positions), intensifying the short squeeze rally. Meanwhile, Ethereum's gains significantly outpaced Bitcoin, typically viewed as a signal of increased market risk appetite, with capital shifting from Bitcoin to altcoins with greater potential.
· 🔧 Ecosystem fundamentals support: Ethereum's exchange reserves have dropped to a nine-year low, meaning reduced selling pressure. Additionally, the market is anticipating the "Glamsterdam" upgrade scheduled for the first half of 2026, which is expected to significantly reduce fees and improve network throughput.