Ethereum up 30% as funding rate hits one-year high

Ethereum rose 30% since Aug. 19 to near $2,500, with funding rates at a one-year high and Tom Lee turning bullish.

"In those two precedent instances, this weekly gain of >30% signaled a launch point for a larger move in ETH," Lee, chairman at Bitmine, said. He pointed to July 2021 and May 2025, when similar weekly gains preceded ETH rallies of 167% and 170%, respectively.

CryptoQuant data shows Ethereum's funding rate on Binance at 0.01, the highest since August 2025, as long buyers pay fees to maintain positions. Spot ETH ETFs recorded $1.06 billion in inflows this month, the best since August 2025, with BlackRock's ETHA leading at $814 million and Fidelity's FETH adding $81 million.

ETH is testing the 200-day EMA at $2,455. A confirmed break above this level could open a path toward the 2026 high of $3,423, while failure risks a pullback to $2,000.

Bitmine's $81 Million ETH Purchase

Bitmine bought 32,447 ETH last week, worth roughly $81 million, increasing its holdings to 5,847,611 ETH — about 4.8% of Ethereum's circulating supply. Around 5.07 million ETH, or 87% of the company's holdings, is staked, projecting approximately $330 million in annualized staking revenue.

Lee also cited macro tailwinds, including the US Treasury's consideration of using its roughly $950 billion cash balance for bond buybacks. Treasury Secretary Scott Bessent has doubled purchases of some longer-dated securities to around $4 billion per operation. Lower long-term yields could reduce the appeal of risk-free debt and push capital toward risk assets including Ethereum.

Ethereum ETFs now hold $14.74 billion in total net assets, equivalent to 4.93% of ETH's market cap, per SoSoValue. Combined with Bitcoin ETFs, the two categories added $2.6 billion in net inflows for the week ending Aug. 21 — their strongest week since October 2025. The rally has also been driven by a short squeeze that wiped out roughly $3 billion in bearish positions within 24 hours, with another $1 billion liquidated the following day. Bitcoin gained about 24% during the same period, climbing from around $62,000 to above $79,000.

The elevated funding rate cuts both ways. If ETH breaks above $2,500, the crowded long positioning could accelerate gains. But if the rally stalls, long buyers may be forced to unwind positions, pushing the price toward $2,000.

This article is for informational purposes only and does not constitute investment advice.