Ethereum Extends Rally On US Treasury Buyback Bets, ETF Inflows

Ethereum Extends Rally on US Treasury Buyback Bets, ETF Inflows

Extending its rally, Ethereum (ETH) price climbed 5.38% over the past 24 hours to $2,375 on Thursday, outperforming the broader market, driven primarily by a powerful macro catalyst and a massive short squeeze.

The rally was sparked by the U.S. Treasury’s August 19 announcement to double long-term bond buybacks, which pushed yields lower and weakened the dollar, creating a favourable backdrop for risk assets like crypto.

This was amplified by President Trump’s supportive statements at a White House crypto summit, boosting regulatory optimism. The move was fundamentally driven by a shift in macro liquidity expectations, not just crypto-specific news.

The sharp price surge triggered a cascade of liquidations, wiping out over $3 billion in crypto shorts in 24 hours—the largest event of 2026.

Ethereum shorts accounted for about $1.73 billion of this. Concurrently, U.S. spot Ethereum ETFs saw their largest daily inflow since October 2025, totalling $189.15 million.

The rally was accelerated by forced buying from over-leveraged bears and supported by fresh institutional capital. The immediate trend is bullish but extended. The next key resistance is the Fibonacci extension level near $2,400. Support is at the recent breakout zone of $2,200.