Ethereum surged past the $2,600 mark on Friday, reaching $2,660—its highest level since January—driven by a combination of sustained ETF inflows and a wave of short liquidations. The move outpaced other major cryptocurrencies, with Ethereum gaining over 8% in 24 hours on Coinbase, while Bitcoin rose only 2.7%, Solana 5.3%, and XRP 4.2%. The broader crypto market ticked up 1.1% to around $2.75 trillion.
ETHA Inflows Continue Unabated
BlackRock’s Ethereum ETF, ETHA, recorded $251.4 million in net inflows over 20 consecutive trading days, with no outflows during the period. On September 11 alone, Ethereum ETFs saw $216 million in net inflows, according to Cryptobriefing, as institutional investors rotated capital away from Bitcoin ETFs. This steady demand has been a key pillar supporting Ethereum’s recent price strength.
Short Liquidations Amplify the Move
The rally was further fueled by a significant short squeeze. Crypto liquidations totaled roughly $665 million over 24 hours, with about $400 million in short positions being wiped out. Ethereum accounted for around $250 million of that total, compared to Bitcoin’s $170 million. The forced buying from liquidated shorts added momentum to the upward price action.
Technical Signals Remain Mixed
Despite the sharp rebound, technical indicators present a nuanced picture. On the hourly chart, Ethereum traded above the MA-50 but below the MA-20, while the daily chart showed the price above the MA-200. The Ichimoku Kijun stood at $2,549, with support near $2,453. MACD indicated strong bullish momentum, but ADX remained neutral, suggesting limited trend strength. RSI was at 50.03 with a Buy reading, while Stoch RSI showed oversold conditions. Before the breakout, ETH was contained in a $2,453–$2,569 range, with a 62% probability of an upward move above $2,549—a level it decisively cleared.
Macro Context
The rally followed a hotter-than-expected August core CPI reading, which rose 0.3% monthly and 2.4% annually. This boosted market pricing for a Federal Reserve rate hike, with CME FedWatch showing an 88% probability. Despite this, Ethereum’s price showed resilience, supported by strong ETF demand and the short squeeze. Analysts like Tom Lee had earlier predicted a softer inflation setup to fuel a market rally, but the actual data did not dampen crypto spirits.
Outlook
Ethereum’s ability to sustain above $2,600 will depend on continued ETF inflows and macro factors. The $2,453 support level remains key if momentum fades, while near-term resistance may appear as the market digests the recent gains. Institutional demand and Federal Reserve policy decisions remain central to the near-term trajectory.
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