Institutional buyers are aggressively building up their Ethereum positions. US spot Ethereum ETF data recorded $697.2 million in inflows across just five trading sessions ending August 21. That marks the strongest weekly inflow of 2026 and the highest tally since October 2025.
The influx of capital quickly triggered short covering during the early stages of the rally. Together, these drivers pushed Ethereum’s price to $2,478 on August 25, 2026, locking in a 30% gain over seven days. Since August 22, price momentum has slowed, consolidating between $2,420 and $2,530.
On the macroeconomic front, the US Treasury Department decided to boost buybacks of 10- to 30-year bonds. The allocation doubled from $2 million to a minimum of $4 million per operation, taking effect on September 9. The move immediately pushed 30-year Treasury yields down from 5.30% to 5.19%.
Market sentiment received an additional boost after the US Securities and Exchange Commission (SEC) proposed new rules. The regulator outlined two exemption pathways for crypto investment contracts: expanding startup funding limits up to $5 million over four years, and introducing a dedicated $75 million annual fundraising route.
Critical Test at $2,550
On technical charts, Ethereum’s rally is showing signs of being overbought. The daily Relative Strength Index (RSI) sits at 79.12, well above the standard 70 threshold. By comparison, the RSI signal line average remains at 67.06.
The $2,500 to $2,550 range now acts as a key resistance zone dictating Ethereum’s next move. In the short term, Ethereum remains safely above its 4-hour Supertrend support around $2,344. Directional momentum is backed by the Aroon indicator, with Aroon Up standing at 64.29% against Aroon Down at 7.14%.
If a pullback occurs, a solid support zone awaits buyers between $2,000 and $2,080, resting right above the 200-day Exponential Moving Average (EMA) line.
Eyeing Bitcoin’s Next Move
The cooling Ethereum rally could prove advantageous down the road. Market analyst Michaël van de Poppe noted that Ethereum is closing in on a key support zone against Bitcoin on higher timeframes. According to him, Ethereum has an opportunity to gain once Bitcoin’s price enters a consolidation phase.
For retail investors, the RSI reading at 79.12 offers a clear risk signal. Buying into an overextended market carries the risk of deploying capital right before a corrective pullback unfolds.
Source: crypto.news.
Also read: How Crypto Staking Works and Its Risks
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
