Ethereum Surges 5.4% on Macro Easing and Pro-Crypto Policy Shifts
Ethereum's price surged by 5.4% over the past 19 hours in a move driven by a combination of macro easing, pro-crypto policy shifts, significant ETF inflows, and a large short squeeze.
The US Treasury's decision to double buybacks of long-term government bonds from $2 billion to $4 billion per operation has had a significant impact on market dynamics. This move aimed at supporting liquidity led to a drop in yields and a weakening dollar, boosting risk assets including crypto. ETH's breakout above $2,000 and intraday peaks above $2,300 are directly linked to this Treasury action.
The policy landscape also turned more crypto-friendly with President Trump's White House meeting with major crypto executives and his support for the CLARITY Act signaling a strategic embrace of crypto technology. The SEC's proposed exemptions and the CFTC's discussions about bringing crypto perpetual futures markets onshore further reinforced this narrative.
The recent rally is characterized by a clear ETH-specific flow story via spot ETFs, with US-listed Ethereum spot ETFs seeing their largest daily inflow since October 2025. BlackRock's ETHA led the charge with $189.15 million in inflows, alongside strong contributions from Fidelity and Grayscale.
A short squeeze also contributed to the surge, with over $3 billion in crypto positions liquidated in 24 hours, one of the largest events since 2018. This wave of short liquidations combined with ETH's breakout above key resistance levels created a textbook 'base resolves higher' scenario.