Ethereum Surges Past $2,000 as Short Liquidations and ETF Inflows Fuel Rally

The Ethereum price has surged past $2,000 for the first time since early June, after experiencing a sharp 17.73% daily jump that caught traders off guard.

At its intraday high, ETH touched $2,103 before pushing further to around $2,254 on the daily chart. The market capitalization of Ethereum now stands at near $270.38 billion, with spot volume over 24 hours at $6.50 billion.

The rally lines up with Bitcoin's own climb toward $70,000 and a broader wave of short liquidations across the crypto market.

Several factors contributed to this sudden surge: the US Treasury doubled its long-term bond buybacks, improving liquidity expectations across risk assets; spot Ethereum ETFs pulled in $189.15 million in net inflows, led by BlackRock's ETHA fund at $122.12 million; and short sellers were squeezed hard, with over $1.13 billion in positions liquidated within 24 hours.

However, despite the bullish momentum, analysts warn that Ethereum may be overbought, given its Relative Strength Index (RSI) reading of 82 on the daily chart.