Ethereum held its position above $2,500 this week, following a wave of record net inflows to spot ETH exchange-traded funds and strong expansion in the stablecoin sector.
ETH price action and key market triggers
On August 27, Ethereum traded near $2,507, reflecting a gain of around 7.8% from its August 21 value of $2,326. The asset briefly touched a weekly high near $2,566 before consolidating just above $2,500.
The rally gained pace after the US Treasury announced plans to increase long-dated bond buyback operations from $2 billion to at least $4 billion per transaction starting September 9. Market participants interpreted this decision as a potential boon for liquidity-driven assets like cryptocurrencies.
Shortly after, the market witnessed a major liquidation event, with nearly $3 billion in leveraged cryptocurrency positions unwound in a single day. Approximately 92% of these liquidations affected short positions. Ethereum itself rallied by around 18% as a result, marking the largest single-day liquidation activity since November 2021.
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The US Treasury’s plan to double long-end bond buyback operations from $2 billion to over $4 billion per transaction was seen as strengthening overall market liquidity, helping push Ethereum and other cryptocurrencies higher.
ETF inflows and stablecoin growth
Spot Ethereum ETFs in the US registered net inflows of $697.2 million for the week ending August 21, delivering their best performance of 2026. Combined flows into both Bitcoin and Ethereum products reached $2.6 billion over the period.
ETH ETFs attracted a total of $1.18 billion over eight consecutive trading sessions, representing the strongest consistent net inflow period since April and the largest eight-day total since October, based on analytics from SoSoValue.
The stablecoin market also grew in parallel, with total capitalization rising by $4.1 billion across the previous two weeks and $2.37 billion increase during the past seven days. These consecutive gains mark the first sustained expansion since mid-May.
Meanwhile, the total amount of staked ETH climbed to 42.4 million, accounting for 34.7% of the circulating supply.
Mini dictionary: SoSoValue is a market analytics platform that tracks trading flows and key data movements for major cryptocurrencies and related investment products.
Key technical levels and analyst views
Market analyst Ted Pillows identified $2,550 as a critical resistance zone for Ethereum. He proposed that a close above this level on the daily chart could lead to a further gain of 10–15% and potentially set a course toward $3,000.
A daily close above $2,550 would signal the potential for a 10% to 15% rally, with targets approaching the $3,000 range if momentum continues.
Technical analysis shows the next major resistance at $2,656, followed by $2,812 and then $2,969 as possible milestones. The 14-day Relative Strength Index stands at approximately 77, indicating that Ethereum is in overbought territory and could experience a period of price consolidation or slower gains before any new rally.
Fresh data from CoinGlass points to a high concentration of leverage around the $2,545–$2,555 region, reinforcing this range as an important short-term target for buyers.
To the downside, key support levels lie at $2,432, $2,343, and $2,187, offering potential zones for buyers to re-enter if selling occurs.
| Level | Type | Significance |
|---|---|---|
| $2,550 | Resistance | Critical breakout level |
| $2,656 | Resistance | Next technical target |
| $2,812 | Resistance | Further upside target |
| $2,432 | Support | First major support |
| $2,343 | Support | Secondary support |
| $2,187 | Support | Key downside level |
