Ethereum Stalls at Key Resistance Amid Overbought Conditions

Ethereum's price recovery near $2,500 on August 28 demonstrates buyers' defense of gains from mid-August. However, an overbought daily reading and a dense band of leveraged positions around $2,550 pose key resistance tests for Ethereum ($ETH).

The US inflation report released in late August had initially sparked a reaction to the price. The Bureau of Economic Analysis reported a 0.2% monthly increase in headline Personal Consumption Expenditures (PCE) inflation and 3.7% annual rise, exceeding economists' expectations.

Despite this development, Ethereum's price maintained its position near $2,500 due to buyers re-entering the market below $2,500. This recovery followed a US Treasury decision to expand long-dated debt buybacks, which could influence bond yields and broader risk appetite.