Ethereum's Price Surges on Short Squeeze and Institutional Buying

Ethereum's price has undergone significant changes in recent months. In June, it plummeted to around $1,512 after a combination of Ethereum Foundation restructuring uncertainty and persistent ETF outflows drove down its value by over 22% in a single month. However, the price began to recover in July, reaching around $1,953 by the end of the month.

It wasn't until August 19 that Ethereum's price exploded, rising by approximately 20% in a single session and sparking a short squeeze. The US Treasury's announcement of increased buybacks of longer-dated government bonds contributed to this surge, as long-term yields fell and risk assets gained a bid.

As the price rose, institutional money poured into Ethereum, with US spot ETFs pulling in $697.2 million in net inflows across five sessions through August 21. BlackRock's iShares Ethereum Trust (ETHA) attracted roughly $1.02 billion over nine consecutive sessions from August 17 to August 27.

The chart analysis indicates that the 200 EMA has flipped from a ceiling to a floor, with price now well above it after months of rejection. The RSI is cooling off, indicating healthy momentum reset without a price collapse.