Ethereum Price Explodes 19% as Treasury Liquidity Support Boosts Risk Assets
Ethereum's price surged 19.02% on Wednesday, breaking above $2,200 and reaching as high as $2,312.
The move was largely driven by the US Treasury's decision to double the size of liquidity-support buybacks for longer-dated government bonds, which helped drive down long-term Treasury yields and boost risk assets.
Experts say that this development could be just the beginning, with Treasury Secretary Scott Bessent potentially implementing further measures to support the bond market.
Ethereum's technical position has also improved significantly, with a break above $2,000 and the July high near $1,973. Analysts believe that if ETH can sustainably break through the $2,300-$2,450 zone, it could open up a move towards $2,700-$3,000.
Citi's 12-month Ethereum forecast stands at $3,175, with a wide range of possible outcomes, including a bullish scenario that reaches $4,488 and a recessionary case that falls to $1,198. 21Shares also sees significant upside potential for Ethereum, with a base-case scenario of $3,400-$3,700 and a bull case reaching $3,900-$4,200.