Ethereum price holds at $2500, and the long sword points to $3,000

Ethereum's price remained above US$2500 on August 27, thanks to a large inflow of U.S. spot ETFs, improved global liquidity conditions and a historic short squeeze, which supported its weekly breakthrough.

Summary

Ethereum prices have increased by approximately 7.8% from their opening price on August 21, trading around US$2507. The U.S. spot Ethereum ETF attracted $697.2 million during the strongest inflow week in 2026. The daily chart shows ETH is at a key $2500 resistance level, with the next upside target at $2656. Liquidation data shows that there is a concentrated leverage position above $2500, while there is also a large amount of leverage concentration below $2415.

Ethereum prices held weekly and broke through

According to data, as of press time, Ethereum (ETH) prices were trading around US$2507, up about 7.8% from the opening price of US$2326 on August 21. The token briefly hit a weekly high of $2566, and then fluctuated within a narrow range around the psychological level of $2500. The rise follows a strong breakthrough in the ETH range from $1875 to $1950, which constrained prices for most of August. Buyers pushed prices above the February to May resistance zone and prevented prices from falling further into previous ranges.

The Ethereum daily chart shows that the price is trading almost exactly at the Murray Mathematical Resistance level of $2500. The Chaikin capital flow indicator is 0.24, still well above zero, indicating that buying pressure continues to exceed selling pressure.

Daily Chart of Ethereum Price-August 27

If we can hold above $2500, it will turn previous resistance into support and enhance the possibility of further upside. However, a rejection could make the breakthrough fragile, as ETH has risen more than 30% from its pre-rebound consolidation zone without experiencing a significant correction.

Why did Ethereum rise?

Ethereum's rise began when the U.S. Treasury Department announced that it would at least double the maximum size of long-end liquidity-backed bond buybacks starting September 9, from $2 billion per operation to $4 billion. This increase covers nominal treasury bonds with 10 to 20 years and 20 to 30 years. Market participants viewed the decision as support for liquidity-sensitive assets. Bond buybacks can improve trading conditions for older treasury bonds, while falling long-term yields often make risky assets such as cryptocurrencies more attractive than fixed-income investments.

A record derivatives squeeze amplified the initial rally. Within 24 hours, nearly US$3 billion in leveraged cryptocurrency positions were cleared, of which short positions accounted for approximately 92% of the total. Ethereum rose about 18% in the incident as short sellers were forced to liquidate their positions in a rising market. This is the largest concentrated short squeeze since November 2021.

Subsequently, U.S. institutional demand helped ETH retain these gains. In the week ended August 21, the spot Ethereum ETF recorded a net inflow of approximately US$697.2 million, its best weekly performance since 2026. These inflows are part of a total of $2.6 billion entering U.S. -listed Bitcoin and Ethereum funds. ETF demand provided a cash market foundation after a clearing-driven rebound, while also helping to offset the impact of individual negative events in the decentralized finance sector, such as an approximately $8.5 million loss related to the Term Finance governance attack.

Ethereum faces a liquidity test of $2550

The 4-hour chart shows that ETH is consolidating in the upper half of the Bollinger Band. Prices are above the indicator midline of $2477, while the upper and lower rails are around $2514 and $2441 respectively.

4-hour chart of Ethereum prices-If the 4-hour closing price of

on August 27 stands on track, it indicates that buyers have regained short-term control. The Awesome oscillator remains at a positive value of 32.22 and green cylinders are beginning to reappear, indicating momentum is trying to recover after weakening during consolidation.

The three-day CoinGlass liquidation heat chart shows that the recent large liquidity concentration area is located around US$2545 to US$2555. Prices tend to move towards the area where heavily leveraged positions are located, so if ETH continues to move upwards, that area will become a direct target.

Ethereum Liquidation Heat Chart

A breakthrough of $2550 could expose a thin liquidity area between about $2575 and $2600. The daily chart identifies US$2656 as the next major technical target. If momentum expands, it will look further towards US$2812. Leverage also brings downside risks. Heat maps show a large clearing cluster around $2410 to $2420, while the 4-hour Bollinger Band provides closer support at $2477 and $2441. Falling behind these levels could pull ETH towards a larger liquidity pool below. Broader daily support is at $2343, followed by the $2187 pivot point. A break below $2343 would put the latest breakthrough at risk and increase the likelihood of a return to previous trading ranges.

Analysts are concerned about whether the weekly close can stand above US$2550.

Cryptocurrency trader Daan Crypto Trades said that ETH is consolidating above previous resistance levels, but needs to continue its gains as soon as possible to avoid falling back below the breakthrough level. "Otherwise, you could see prices drift back below resistance and turn into a massive liquidity grab," the analyst wrote. He believes bulls should push Ethereum to new local highs before the end of the week. If you fail to do so, a rejection line may be created, thus weakening the seemingly breakthrough trend.

Analyst Ted Pillows also identified $2550 as a key resistance area for Ethereum. According to its weekly chart, a close above that level could open up room for a move towards $3000. The chart shows that the first major support level is around $2180, and the lower support area is around $1950.

"$ETH is right in the $2550 resistance zone. Weekly closing prices above this level could push Ethereum to $3000."

The daily Murray mathematical setting generally supports this upward scenario. If a breakthrough of US$2500 is confirmed, US$2656, US$2812 and US$2969 appear on the chart as follow-up targets. The first two levels represent overbought areas, meaning that traders may choose to take profits even if the overall trend remains bullish.

Therefore, Ethereum's next move depends on whether ETF-backed spot demand can push prices past the $2550 liquidity barrier. A weekly close above that level will confirm that buyers are still in control after the short squeeze; a break below $2441 indicates that the rally has entered a deeper correction.

Disclosure: This article does not constitute investment advice. The content and materials on the page are for educational purposes only.