Ethereum surges 29% on stimulus and regulatory tailwinds

ETH posted its strongest weekly performance of the year following three converging catalysts in 48 hours. The US Treasury doubled its longer-dated government debt buyback operations from $2 billion to $4 billion, lowering long-end yields and reopening the risk appetite window crypto had been locked out of since spring. Simultaneously, the SEC released a proposed framework allowing crypto projects to raise capital under defined exemptions and exit securities classification once core managerial commitments are met. President Trump also publicly pressured the Senate to advance the Clarity Act, now scheduled for a procedural vote in September.

The move was financed by forced liquidations of leveraged positions. Short positions accounted for roughly $2.77 billion of the $3 billion in total crypto liquidations wiped out in 24 hours—roughly 92% of the damage. This capitulation fuelled the vertical price move from below $1,950 to an intraday peak near $2,546 on 22 August, with price holding most of those gains since.

Institutional inflows are validating rather than fading the rally. Spot Ether ETFs received $71.47 million on 18 August, with BlackRock's ETHA capturing $64.68 million of that total. Over 30 days, inflows reached $524.3 million. On the development side, the Ethereum Foundation activated the Platåberget public testnet on 17 August as preparation for Glamsterdam, targeted for Q4 2026.

ETH has shifted from a downtrend into a confirmed bullish structure for the first time since February, though price is now trading in deeply overbought territory. The 200 EMA at $2,139.36 had capped every rally attempt throughout the summer, sloping downward from May through mid-August. The breakout candle cleared not just this moving average but also the $2,200 and $2,430 structural levels in a single session, with price now trading 15.6% above the 200 EMA.