Key Takeaways:
Ether climbed 20% in a week to near $2,375 after the US Treasury doubled long-dated bond buybacks and the SEC proposed new rules for public token sales.
Spot Ethereum ETFs drew $189.15 million on Aug. 19, their largest daily inflow since October 2025, while more than $1.2 billion in leveraged positions were liquidated across crypto exchanges in the same session, with shorts accounting for roughly 70 percent of the total, according to market data.
Ether's rally accelerated after the US Treasury said on Aug. 19 it would double the maximum size of liquidity-support buybacks for longer-dated securities to at least $4 billion per operation, running from Sept. 9 to Nov. 4. The announcement pushed the 30-year Treasury yield down roughly 9 to 10 basis points and the 10-year yield lower, weakening the dollar and rotating capital into higher-beta assets. Bitcoin jumped from near $64,100 to above $69,000 in the same move, while total crypto market cap rose about 4.7 percent over 24 hours.
Ether's daily relative strength index sits at 82.2, in overbought territory, with key support between $2,220 and $2,250. A daily close above $2,300 would confirm continuation toward $2,400, while a break below $2,220 would signal a deeper correction, traders said. The Treasury buyback program runs until Nov. 4, keeping the macro backdrop supportive, though the quieting of ETH's largest buyer could temper sustained demand.
The Treasury's decision to double buyback operations for 10- to 30-year debt from $2 billion to at least $4 billion per operation was the primary macro driver. The move narrowed the 2s-30s curve spread and flipped global risk appetite back on, with ETH riding the wave alongside Bitcoin. The buyback is a debt-management operation, not quantitative easing — it swaps one form of government debt for another to improve bond market liquidity, according to Binance Academy.
The SEC's proposed "Regulation Crypto Assets" framework, which would govern how tokens are sold to the public, adds a regulatory dimension to the rally. While the proposal's details and timeline are still emerging, the market treated it as a constructive step toward clearer rules for token issuance. The regulatory backdrop, combined with the macro liquidity signal, created a favorable environment for institutional participation.
The short squeeze was a key amplifier. As BTC broke to a multi-week high and ETH jumped through $2,000 — a level it had not cleared since June — forced buying from liquidations accelerated the move. The largest single liquidation was a $32 million ETH-USD position on Bitget. ETH's breakout through $2,000 triggered breakout strategies and momentum traders who had been waiting for confirmation.
Ether's 24-hour trading volume jumped 90 percent to more than $36 billion, according to exchange data. The token's market cap rose to roughly $280 billion, with ETH dominance at about 11.4 percent.
However, one concern flagged by analysts: ETH's largest buyer has gone quiet. The reduced ongoing demand pressure could temper the rally's sustainability, even as the macro and regulatory backdrop remains supportive.
This article is for informational purposes only and does not constitute investment advice.
