Ether Surges Past $2,400 as Treasury Buybacks Send Cryptocurrency Prices Soaring

After a sharp rally, Ether has wiped out roughly four months of losses. The world's second-largest cryptocurrency is now back toward its April high, but traders are watching whether it can break through resistance around $2,465.

The token climbed 31% from trough to peak last week and came close to the April monthly high of $2,464.54 before pulling back. This rebound followed a steep decline over the past year that had erased nearly 70% of Ether's value.

A major catalyst for this rally came from the U.S. bond market, where the Treasury Department announced it would at least double the size of liquidity-support buybacks for longer-dated government debt. The maximum size of operations covering 10- to 30-year securities will increase from $2 billion to at least $4 billion starting September 9 and remain at that level through the current refunding quarter.

The announcement pushed longer-term Treasury yields lower and weighed on the dollar, helping fuel a rally across cryptocurrencies. CoinDesk reported that Bitcoin posted its second-best weekly performance since early 2021, while Ether gained more than 30% during the same period as investors returned to digital assets.