Ethereum (ETH) climbed nearly 2% in the past 24 hours, hitting the $2,800 mark as technical and on-chain signals pointed to the potential for further gains. The cryptocurrency has steadily recovered since falling to a low near $1,550, establishing a key bottom that ended its previous bearish cycle.
Short liquidations and ETF inflows lift Ethereum
ETH’s recent surge saw the asset break out of a bullish continuation pattern. This move placed the next significant upside target at approximately $3,400. Trading activity intensified during the rally, with Ethereum’s trading volume rising to about $20 billion. This figure amounts to nearly 6% of ETH’s circulating market capitalization, reflecting heightened participation by traders.
The broader digital asset market also joined the rally, forcing bearish traders to close leveraged positions. Total crypto short liquidations reached $924 million on Monday—Ethereum accounted for about one-fifth of those liquidations. When traders are forced to close their short positions, they must buy back the asset, which can further accelerate price increases.
Such liquidation-driven rallies can produce sharp volatility, and Ethereum will require sustained spot demand and continued capital inflows to maintain its momentum once the immediate effects of the short squeeze diminish.
US spot Ethereum ETFs experienced robust inflows this week, with $270 million recorded on Monday and $162.31 million on Tuesday. These inflows coincided with ETH’s notable price gains and its breakout from the bullish flag formation.
While daily ETF inflows were strong, the broader monthly trend has been somewhat subdued. Ethereum ETFs have attracted $620 million so far in September. At the current pace, these funds would end the month near $750 million in net inflows, about half the level seen in August. Nonetheless, these amounts could shift quickly if further price advances draw larger institutional allocations.
Consistent ETF inflows would improve the bullish outlook for Ethereum, signaling that the rally is increasingly supported by regulated investment products rather than being driven primarily by speculative trading in leveraged derivatives.
On-chain indicators point to renewed bullish momentum
On-chain data further supports the idea that ETH may have entered a new bullish phase. According to Santiment, Ethereum’s 365-day Market Value to Realized Value (MVRV) ratio climbed to 3.6%, marking its first rise above zero since October 2025. The MVRV ratio compares Ethereum’s current market capitalization with the aggregate price of all tokens at the time they last moved. A positive ratio suggests the average holder is sitting on unrealized profits.
Previous instances where the MVRV ratio crossed above zero after an extended bear market have been followed by advances toward the $4,000 level. However, historical performance does not guarantee similar outcomes in the present cycle. That said, this technical crossover adds to a series of constructive developments, including a bullish price structure and growing market momentum.
Upside targets and near-term risks
Ethereum’s strong August rally led to the formation of a bullish flag pattern, typically seen as a consolidation before the trend resumes. If ETH’s move matches the height of the flagpole, the projected upside could reach around $3,400, which would represent a 21.4% gain from current levels. The $2,800 zone remains a crucial level—if ETH can close above it on a daily basis and successfully retest it as support, this would improve the likelihood of advancing to $3,000 and then $3,400.
Technical momentum continues to favor buyers, with the Relative Strength Index rising to 69, just below the overbought threshold of 70. This reading confirms strong momentum but also points to the risk of price exhaustion. A failure to hold $2,800 could trigger profit-taking and result in a brief pullback before any further advance.
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Ethereum’s outlook remains supported by higher volume, continued ETF inflows, on-chain improvements, and a technical breakout, even as the market remains vigilant for signs of near-term profit-taking or volatility.
