Foreign media reports that Ethereum has shown a clear strengthening trend over the past week, breaking through the $2,000 mark which led to short sellers closing their positions, thereby amplifying the price momentum. At the same time, expectations of improved crypto regulation in the United States and the Treasury Department's plans to expand treasury bond repurchases have also contributed to a recovery in sentiment towards risk assets, with ETH becoming one of the core assets in this round of rebound.
ETF Capital inflows are heating up
According to SoSoValue data, in August, funds flowing into Ethereum spot ETF exceeded $1.2 billion, reaching the highest level for a single month since August 2025. The return of institutional funds is seen as an important support for this round of upward movement.
Market sentiment has also warmed up accordingly. The Fear & Greed Index in the crypto market has risen from a previous fear range below 40 to 80, entering an area of extreme greed. This is the highest level for this indicator since December 2024, when the price of Ethereum was near $4,000.
Regulatory expectations resonate with liquidity
The article mentions that the regulatory framework for crypto assets proposed by the U.S. Securities and Exchange Commission has raised market expectations for an improvement in the industry's financing environment. Another factor of concern is that the U.S. Treasury Department plans to double the scale of treasury bond repurchases starting from September, with markets anticipating that this will release more liquidity into the financial system.
In this context, high-volatility assets such as crypto assets have received more attention from investors. However, the rapid rise in sentiment also means that short-term fluctuations may increase, and the market has not completely escaped the risk of pullbacks.
Volume transaction signals remain to be confirmed.
From the transaction data, the gap between the 7-day and 30-day average trading volumes on Ethereum is narrowing, indicating a recent rebound in buying interest, and the pressure from bears has supported the level of trading activity. However, the article suggests that a stronger trend confirmation signal has not yet appeared.
If the 7-day moving average of trading volume officially crosses above the 30-day moving average, it is usually considered a clearer confirmation of an upward trend. The article states that in the past three years, this signal has appeared multiple times near the beginning of each upward cycle on Ethereum.
In addition, the market is also paying attention to Ethereum's subsequent Glamsterdam upgrade. If the upgrade progresses smoothly, it may further enhance market confidence in its development roadmap and network capabilities, and become an important catalyst for the next phase.
$2,200 becomes a key short-term level
The article suggests that the weekly trend of Ethereum has shifted from bearish to bullish, with a medium-term target of $2800. However, before continuing to rise, the price may first retest the $2200 level.
It is mentioned in the text that if ETH can hold at $2,200 and further break through $2,800, there may be further room for upward movement. However, the current weekly line of RSI has risen to 88, indicating that the market is in a clearly overbought zone, and there is still short-term downward pressure.
Overall, the capital flow, regulatory expectations, and liquidity environment of ETF have provided support for Ethereum's rebound. Next, whether the level of $2,200 can be maintained and whether the volume signals can be confirmed will become key points of focus for market observers.
