Ethereum (ETH) has advanced nearly 2% over the trailing 24 hours, hitting the previously targeted $2,800 level as stronger on-chain and technical metrics point toward potential further gains.
This latest upward move reinforces the perspective that Ethereum’s prior bearish phase concluded when the coin dropped to roughly $1,550.
Following that low, ETH mounted a sharp recovery and cleared a bullish continuation pattern, setting the next major price objective close to $3,400.
Even though the broader macroeconomic climate stays difficult, climbing trading volume, renewed exchange-traded fund inflows, and a key on-chain indicator signal that buyers are taking charge of the market once again.
Ethereum trading activity surges as shorts get liquidated
Trading volume for Ethereum hit roughly $20 billion during the recent rally.
This volume equals nearly 6% of the cryptocurrency’s circulating market capitalization, highlighting heightened participation among traders.
The price action was part of a wider crypto market surge that forced bearish market participants to unwind leveraged positions.
Across the broader crypto market, short liquidations hit $924 million on Monday—the highest mark since August—after several leading digital assets penetrated key resistance levels.
Ethereum accounted for about 20% of those liquidations.
The mandatory closing of short bets can supercharge a rally because traders must purchase the asset back to cover their positions, a dynamic that likely helped accelerate ETH’s push to $2,800.
That said, rallies driven by liquidations can also spark significant volatility.
Ethereum will require persistent spot demand and ongoing capital inflows to maintain its momentum after the immediate short squeeze cools down.
U.S. spot Ethereum ETFs kicked off the week on stronger footing, pulling in approximately $270 million on Monday and $162.31 million on Tuesday.
This resurgence in demand coincided with a double-digit price increase for ETH and its breakout past a bullish flag pattern.
Despite these strong daily figures, the monthly trend remains relatively modest, with Ethereum ETFs securing roughly $620 million so far in September.
At that rate, the funds are on track to wrap up the month with close to $750 million in net inflows.
Such an outcome would reflect roughly a 50% drop compared to August’s total. Even so, this projection relies on a simple run rate and could shift rapidly if Ethereum keeps climbing and draws extra institutional interest through the remainder of the month.
More robust and steady ETF inflows would bolster the bullish case by demonstrating that the rally draws strength from regulated investment vehicles instead of relying solely on leveraged derivatives trading.
On-chain data for Ethereum likewise points to the start of a fresh bullish phase.
Santiment’s 365-day Market Value to Realized Value (MVRV) ratio climbed to 3.6%, turning positive for the first time since October 2025.
The MVRV metric measures Ethereum’s current market cap against the aggregate value of coins at the time they were last transacted.
A positive reading shows that the typical holder in that timeframe is sitting on an unrealized gain.
Based on historical precedents highlighted in the initial analysis, the prior four instances where this indicator crossed into positive territory after an extended bear market preceded rallies toward approximately $4,000.
Past performance does not guarantee identical results this time around.
Nonetheless, this latest crossover introduces another supportive metric to Ethereum’s improving price structure and building market momentum.
Can Ethereum extend its rally toward $3,400?
Ethereum has broken out above a bullish flag formation that formed in the wake of its robust August rally.
A flag is generally viewed as a continuation pattern, signaling a brief consolidation before the primary trend resumes.
Applying the height of the pattern’s flagpole to project the potential move yields an upside objective near $3,400. From the $2,800 zone, achieving that target would equal an increase of about 21.4%.
The $2,800 threshold remains the critical level to monitor. A definitive daily close above it, followed by a successful retest of the level as support, would validate the breakout and clear a path toward $3,000 and ultimately $3,400.
Momentum oscillators currently lean in favor of the buyers.
Ethereum’s Relative Strength Index has moved past its signal line to hit roughly 69, bringing it just shy of the traditional overbought boundary of 70.
This reading confirms powerful upward momentum, though it also hints that the rally might be getting extended.
An inability to hold above $2,800 could spark profit-taking and a brief pullback before ETH makes another run upward.
For the moment, the mix of heavier volume, upbeat ETF flows, improving on-chain metrics, and a technical breakout keeps the overarching outlook bullish.
FAQ
What price did Ethereum recently reach?
Ethereum reached its forecast target of $2,800.
What was the total for crypto short liquidations on Monday?
Total crypto short liquidations reached $924 million on Monday, with Ethereum accounting for about one-fifth of that total.
What is the next major upside price target for ETH?
The next major upside target is near $3,400.
What do on-chain indicators show about holder profitability?
Santiment’s 365-day MVRV ratio rose to 3.6%, indicating that the average holder within that period is holding an unrealized profit.
