Ethereum Extends Rally on US Treasury Buyback Bets, ETF Inflows
Extending its rally, Ethereum (ETH) price climbed 5.38% over the past 24 hours to $2,375 on Thursday, outperforming the broader market, driven primarily by a powerful macro catalyst and a massive short squeeze.
The rally was sparked by the U.S. Treasury’s August 19 announcement to double long-term bond buybacks, which pushed yields lower and weakened the dollar, creating a favourable backdrop for risk assets like crypto.
This was amplified by President Trump’s supportive statements at a White House crypto summit, boosting regulatory optimism. The move was fundamentally driven by a shift in macro liquidity expectations, not just crypto-specific news.
The sharp price surge triggered a cascade of liquidations, wiping out over $3 billion in crypto shorts in 24 hours—the largest event of 2026.
Ethereum shorts accounted for about $1.73 billion of this. Concurrently, U.S. spot Ethereum ETFs saw their largest daily inflow since October 2025, totalling $189.15 million.
The rally was accelerated by forced buying from over-leveraged bears and supported by fresh institutional capital. The immediate trend is bullish but extended. The next key resistance is the Fibonacci extension level near $2,400. Support is at the recent breakout zone of $2,200.
The upcoming cloture vote on the CLARITY Act (September 15) is a key regulatory event to watch. The market needs to consolidate gains; follow-through depends on continued ETF demand.
Price action around $2,400 and daily ETF flow data from providers like BlackRock. The combination of a favourable macro shift, a historic short squeeze, and strong ETF inflows propelled Ethereum higher.
According to SoSoValue data, on August 20 , the total net inflow of Ethereum spot ETFs was $221 million. The Ethereum spot ETF with the highest single-day net inflow yesterday was BlackRock’s ETF ETHA, which recorded $173 million in net inflows.
The cumulative historical net inflow for ETHA has now reached $12.019 billion. Second was BlackRock’s Staked $ETH ETF ETHB, with a single-day net inflow of $35.9045 million, and its cumulative historical net inflow has reached $606 million.
As of the time of this report, the total net asset value of Ethereum spot ETFs stood at $13.585 billion, with the ETF net asset ratio (market capitalisation as a percentage of Ethereum’s total market cap) at 4.86%, and cumulative historical net inflows now at $11.965 billion. Ethereum Price Soars by 20% on Surprise U.S Treasury Policy
