Ethereum Price Surges by Over 30% on Combination of Factors
Ethereum (ETH) has seen a significant price surge in August, rising by over 30% to $2,453. The rally was sparked by a combination of factors, including the US Treasury's announcement of increased bond buybacks and a brutal short squeeze.
On August 19, ETH jumped by around 20% after the Treasury announced it would at least double its maximum bond buyback size from around $2 billion to at least $4 billion per operation for 10-30 year securities starting September 9. This news led to a loosening of financial conditions and a subsequent bid in risk assets.
The short squeeze was particularly severe, with approximately $265 million in shorts being wiped out against just $65 million in longs in a single 24-hour period. The broader category saw net inflows of around $102.1 million on August 28, indicating that real institutional money has entered the market.
The chart analysis shows that ETH is currently sitting on the line of immediate support at $2,430, which was resistance through April and May. The next major support level lies at $2,200, closely aligned with the 200 EMA zone at $2,158.