Ethereum rally cools near $2,478 as $2,550 resistance looms

Ethereum traded near $2,478 on Aug. 25, up 30% in seven days after a short squeeze and record ETF inflows.

CoinGlass data shows short sellers across the crypto market lost nearly $2.7 billion within 24 hours, with total liquidations approaching $3 billion and Ethereum accounting for about $1.1 billion of forced closures. The move carried ETH through $2,000, $2,200, and $2,400 in less than a week, reversing a stretch when the token had largely traded between $1,800 and $1,950 during the first half of August.

US spot Ethereum ETFs recorded $697.2 million in net inflows during the five sessions through Aug. 21, their strongest weekly result of 2026 and best since early October 2025, according to crypto.news data. Combined with $1.918 billion into Bitcoin funds, the two groups drew roughly $2.6 billion. The rally also followed the US Treasury's Aug. 19 decision to raise its longer-dated bond buybacks from $2 billion to at least $4 billion starting Sept. 9, which pushed the 30-year yield from above 5.30% to around 5.19%.

The daily relative strength index stood at 79.12, above the overbought threshold of 70, while CoinGlass's three-day liquidation heatmap shows the largest upside liquidity cluster between $2,540 and $2,570. A confirmed close above $2,550 could open $2,600 and eventually $3,000; rejection risks a pullback toward $2,410-$2,450 and the 4-hour Supertrend support at $2,344.

Overbought RSI and the moving-average stack

Ethereum has cleared all four major moving averages, trading above the 20-day simple moving average at $2,079, the 200-day average at $2,013, the 50-day average at $1,950, and the 100-day average near $1,877. The breakout above the 200-day average removed one of the market's most important technical barriers, leaving the $2,000-$2,080 region as major support during a broader correction.

Short-term conditions look stretched. The daily RSI's signal average had climbed to 67.06, showing momentum remains strong even as profit-taking risk rises. The 4-hour chart stays constructive, with ETH holding above Supertrend support at approximately $2,344 while Aroon Up at 64.29% remains well above Aroon Down at 7.14%.

$2,550 liquidation cluster sets the next test

CoinGlass's three-day liquidation heatmap shows the most visible upside liquidity between approximately $2,540 and $2,570, with further clusters extending toward $2,600-$2,630. A move through $2,550 could force additional short positions to close and help ETH target $2,600, with limited recent price structure until around $2,700 and the psychological $3,000 level.

Analyst Ted Pillows identified $2,500-$2,550 as the main resistance zone, saying a weekly close above that area could support a direct move toward $3,000. The heatmap also shows substantial downside liquidity between $2,410 and $2,450, meaning a rejection from $2,500 could draw the price toward that zone before buyers attempt another move higher. Below it, losing the 4-hour Supertrend level at $2,344 would expose approximately $2,200, followed by the cluster of daily moving averages around $2,000-$2,080.

Michaël van de Poppe said ETH was approaching a higher-time-frame support level against Bitcoin and could benefit once Bitcoin begins consolidating. Ethereum therefore enters the next weekly close between a clear breakout level and an overextended momentum reading, with the $2,410-$2,450 band preserving the short-term setup and a confirmed close above $2,550 strengthening the case for $2,700 and eventually $3,000.

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