Ethereum Surges Past $2,000 as Institutional Demand and Treasury Buybacks Fuel Rally

Ethereum has gained significant momentum in recent days, breaking above $2,000 and triggering substantial short liquidations. The crypto's price has climbed 27% over the past seven days, with institutional demand strengthening alongside the price recovery.

The Treasury Department's plan to double its bond buybacks beginning in September is expected to inject billions of dollars into financial markets, potentially benefiting risk-sensitive assets like cryptocurrencies. Meanwhile, Ethereum ETFs attracted more than $1.2 billion in August, their highest monthly inflow since August 2025.

Crypto market sentiment has shifted sharply, with the Crypto Fear and Greed Index rising from below 40 to 80, indicating extreme greed. However, elevated optimism can also increase the possibility of a short-term correction.