Ethereum (ETH) broke above the $2,500 mark this week, reaching its highest level since January as institutional capital poured into spot Ethereum ETFs and sellers faced large-scale liquidations.
Institutional inflows and ETF performance
US spot Ethereum exchange-traded funds attracted $697 million in net inflows over the last week, reversing a previous outflow of $2.2 million. August has seen a substantial increase in interest, as Ethereum-based products recorded $939 million in new capital, clearly surpassing July’s $365 million intake.
Among these funds, BlackRock’s Ethereum ETF leads the sector with $7.8 billion in total assets under management. All US spot Ethereum funds now collectively oversee $14.2 billion, with total net inflows since their inception reaching $12.15 billion.
Significant capital flows targeted Ethereum ETFs, as $697 million entered the market over one week, eclipsing outflows from the previous period and positioning August as a strong month for institutional interest.
| Fund/Product | This Week’s Net Inflow | Total AUM |
|---|---|---|
| BlackRock Ethereum ETF | $697 million (industry total) | $7.8 billion |
| All US Spot Ethereum ETFs | $697 million | $14.2 billion |
Short seller liquidations and market sentiment
Major price momentum for ETH was boosted by a string of short liquidations, as the asset appreciated by 8% on Friday alone. In just one day, $265 million in bearish positions were forcibly closed, contributing to a total of $1.69 billion in short liquidations over three days.
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AAPLThe market’s tone grew distinctly optimistic, with the Crypto Fear and Greed Index rising to 76, moving deep into “greed” territory. This change in sentiment parallels broader financial optimism following arguments from Treasury Secretary Scott Bessent about expanded bond repurchase programs.
Scott Bessent is the United States Treasury Secretary, responsible for overseeing the nation’s fiscal policy and financial markets.
Mini dictionary: Short liquidation – The forced closure of leveraged sell (short) positions when an asset’s price rises rapidly, causing losses for traders betting against the asset.
Technical breakout and price targets
Ethereum’s daily chart showed a bullish “golden cross” pattern, as the 50-day Weighted Moving Average climbed above the 200-day equivalent. This formation, watched closely by traders, often signals sustained upward momentum.
ETH’s price has advanced beyond its 20-, 50-, 100-, and 200-day Exponential Moving Averages. The 14-day Relative Strength Index has spiked close to 87, while the Stochastic Oscillator stands at 99, both indicating overbought conditions.
Technical analyst Ted Pillows highlighted on X that reclaiming the $2,400 level was a critical milestone. He noted that a weekly close above $2,450 would set $3,000 as ETH’s next likely target.
Ethereum’s technical setup appears robust, with a golden cross and momentum indicators pointing to further upside if the asset closes the week above $2,450.
Immediate resistance has formed at $2,545, while upside targets include $2,750 and $2,868. On the support side, $2,172 is the first major level, followed by the 200-day EMA near $2,130.
Network activity and staking update
Staking on the Ethereum network has intensified, with participation now at 35% and 42.3 million ETH tokens locked up by network validators. This figure suggests growing conviction among long-term holders.
On-chain analytics indicate that profit-taking by wallets holding gains has remained modest. Additionally, the Age Consumed indicator—which tracks movement from long-inactive addresses—remains subdued, implying that established holders are holding their assets through the rally.
Mini dictionary: Age Consumed – An on-chain metric measuring the movement of previously idle coins, used to assess the behavior of long-term holders.
The Coinbase Premium Index, which tracks price differences between ETH on Coinbase Pro and Binance, has trended upward but not yet crossed into positive territory. A shift above zero could indicate even stronger US institutional participation.
As of the latest data, Ethereum traded around $2,520, with ETF products on course for their best weekly performance of 2026.
