Ethereum's Price Surge Hits Roadblock Amid Institutional Frenzy

Ethereum's price surge has hit a speed bump, losing 5.7% on Sunday to trade at $2,375.19 after peaking above $2,500 earlier in the week.

The rally was fueled by an influx of institutional money, with US spot Ethereum ETFs absorbing $697 million in net inflows between August 19 and 21, pushing total assets under management to $14.3 billion.

However, technical indicators had been flashing warning signs for days, and the futures market absorbed a wave of forced liquidations totaling $264.92 million, impacting over 234,000 traders.

The market's overbought condition is also evident in Ethereum's Relative Strength Index, which peaked between 78 and 88 but now sits at 73.3.