Ethereum rose by 3%, to around $2397, on Aug. 21, after having reached an intraday maximum near $2448, and continuing the breakout fueled by ETFs inflows. Short liquidations were also a factor.
The following is a summary of the information that you will find on this page.
- Ethereum’s price has reached $2.448. It is up more than 20% in the past seven days.
- US Ether ETFs drew $189 millions on Aug. 19. This was their highest inflow since Oct.
- The daily RSI was 86. This placed ETH in overbought territory.
- If the weekly close is above $2.450, it could be a good indicator of levels as high as $2,500 or $3,000
Ethereum Price Action Today
According to crypto.news data, Ethereum (ETHThe price of ETH opened on August 21 at $2 327 before rising to $2 448. It then settled at around $2 397 as I write this. The 3% rise followed a more significant move which took ETH from under $2,000 to over $2,300 in two sessions.
Ethereum’s rally has pushed it through several barriers that have limited gains since April. These include the $2250 and $2,000 resistance areas. ETH cleared the Murrey Math Level of $2,375 on the 4-hour graph, but the price struggled to maintain above this level after its rejection at $2,450.
The momentum remained high on the shorter-term timescale. The Awesome 4-hour Oscillator rose from 329.16 to an increasing series of green bars.
The daily chart, however, showed that ETH was trading outside of its prior range. Price was about 5.5% higher than the upper Bollinger Band of $2,272 while the middle Bollinger Band remained at $1,957.
What’s driving the Ethereum rally?
SoSoValue’s data shows that US Ether-based ETFs received $189 Million in net flows on August 19. This was their highest daily inflow since October 20, 2025. BlackRock ETHA was responsible for $122 million.
ETFs were purchased as Ethereum broke through $2,000 forcing traders to liquidate leveraged short bets. Invezz cited CoinGlass data that showed more than $1billion in Ether shorts had been liquidated at the time of initial breakout. This contributed to an overall crypto liquidity event exceeding $3billion.
CoinGlass’ heatmap for the past week shows that ETH has moved quickly through clusters of liquidation between $1,900 to $2,300. The speed of the rise was likely accelerated by forced purchases in conjunction with liquidations that were short. However, the breakthrough also coincided to new demand from US listed funds.
After the US Treasury declared that they would increase the amount of nominal securities purchased from 2 billion dollars to 4 billion dollars per transaction, macro-conditions provided an additional catalyst. This change is effective from Sept. 9, and will continue through November 4,
Investors saw the announcement as an encouragement to liquidity in the bond markets. Treasury yields and US dollars weakened subsequently, allowing Bitcoin, Ethereum and other risk assets to extend their gains.
Ethereum signals of overbought below $2,500
Ethereum’s immediate support lies between $2,448 to $2,500. The upper boundary was the intraday high of Aug. 21, while the Murrey Math Chart identifies $2,500 to be the next major level.
If the $2,500 level is sustained, $2,625, then $2,750, could be revealed. Chart shows a higher reversal potential near $2,875, but ETH will need to see additional demand in order to get there.
The main risk is the daily momentum. Ethereum’s relative strength index for the 14 days soared to 86.12 – well above 70, which is often associated with conditions of overboughtness. This reading doesn’t guarantee a reverse, but shows that the prices are moving much more quickly than they were in recent months.
CoinGlass heatmap shows nearby concentrations of liquidation between $2,270 and 2,350. A failure to clear $2,450 could therefore send ETH back toward $2,375, followed by the $2,300–$2,250 area.
The breakout level of $2,000 remains the largest support. This zone is strengthened by the Bollinger Bands’ midpoint at $1,957 daily and a heat map cluster near $1990.
The $2,450 close is watched by analysts
Ted Pillows is a crypto analyst identified Ethereum’s second resistance area is $2,450. According to him, a close of the week above this area would open the door for an upward move towards $3,000 and the close will be important as it confirms whether or not the breakout is continuing.
Rain, a market analyst said that ETH rose 17.1% in the first day and pushed it weekly gain beyond 20% once they cleared resistances between $1.980 and $2,000 Rain said that in just one day the realized 30-day volatility increased from 39.6 percent to 62.6 percent, illustrating how quickly earlier compression was over.
Rain claimed Ethereum has to now demonstrate that $2,000 will function as a basis. To maintain the current market structure it is important to hold the price above the $2,000 mark.
US regulations add to Ethereum’s catalyst
It was held immediately after the SEC’s Regulation Crypto Assets proposalPublished on August 18. The proposal framework will introduce customized registration exemptions to certain investment contracts using crypto assets. These exemptions include fundraising exemptions that can reach up $75 million per year.
This proposal is not yet law, and it does not affect Ethereum’s status as a regulatory entity immediately. But the SEC has said that its goal is to make it easier for crypto-issuers to comply with federal securities laws. This will help to improve regulatory conditions in the US.
Ethereum’s future move depends now on whether ETF and spot demand can absorb profits near $2450. The $2,500 target would be in focus if a breakout is confirmed, while rejection may lead to a cooling phase toward $2375 or $2300, as the daily RSI resets.
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Source: crypto.news
