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Ethereum (ETH) surged 18% to over $2,250 on Thursday, driven by US Treasury bond buybacks, pro-crypto policy signals, and $1.13 billion in liquidations.
Ethereum (ETH) jumped approximately 18% to trade above $2,250 on Thursday, as the broader crypto market added $190 billion following US Treasury bond buybacks and a significant short squeeze [1]. The move reflects a spread of demand beyond Bitcoin, which also surged, amid easing financial conditions and institutional inflows into spot Bitcoin ETFs [1].
| At a glance | |
|---|---|
| ETH Price | Above $2,250 [1] |
| 24h Move | Up 18% [1] |
| Key Level | Defending $2,200 [1] |
| Catalyst | Treasury buybacks, short squeeze, pro-crypto signals [1] |
The rally in digital assets, including Ethereum, began after the US Treasury expanded long-dated bond buybacks, which lowered Treasury yields and weakened the dollar [1]. This shift reduced the relative appeal of cash and government debt, improving appetite for riskier assets [1]. Policy signals from Washington also contributed, with President Donald Trump urging Congress to advance a "fair" version of the Digital Asset Market Clarity Act [1].
This macro backdrop was amplified by one of crypto's largest recorded short squeezes, with nearly $3 billion in positions liquidated across more than 172,000 traders over 24 hours [1]. Bearish positions accounted for about 92% of the total, losing roughly $2.74 billion [1]. Ethereum alone generated about $1.13 billion in liquidations [1]. When leveraged short positions are forcibly closed, exchanges buy the underlying asset, fueling further price increases [1].
Bitcoin surged above $71,000, with spot Bitcoin ETFs attracting $517.19 million on Wednesday, their largest daily inflow since May 4 [1]. BlackRock’s IBIT accounted for $284.7 million of these inflows, which analysts described as renewed institutional positioning rather than retail "FOMO" [1].
Ethereum's 18% jump to above $2,250 demonstrates stronger breakout behavior compared to other major tokens [1]. Avinash Shekhar, co-founder and CEO of Pi42, noted Ethereum's stronger breakout as evidence that demand is spreading beyond Bitcoin [1]. Other large-cap tokens like Solana also posted double-digit gains, and XRP gained around 10%, pushing through $1.15 [1].
The immediate test for Ethereum is to defend the $2,200 region [1]. While forced buying from liquidations can create explosive moves, sustained fresh capital is crucial for the rally to hold [1].
The combination of easing financial conditions, positive policy signals, and a massive short squeeze fueled the recent crypto rally. The sustainability of this upward trend will depend on whether genuine capital inflows continue once the liquidation-driven momentum subsides [1].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Aug 21, 2026 · How we report
It is an Ethereum network upgrade designed to increase the block gas limit, lower transaction fees, and improve overall network capacity.
Yes, Charles Schwab began rolling out direct Ethereum trading to select retail clients in May 2026, charging a 0.75% fee per trade.
As of late August 2026, Ethereum trades around $2,460, which is approximately 50% below its August 2025 all-time high of $4,953.