5 min read Ethereum is holding steady at the start of the new month around 2,400 after gaining 32.5% in August, its best monthly performance since July 2025.
This also marks the second straight month of gains for the second-largest cryptocurrency, extending its recovery from a nearly 70% drop between October 2025 and June 2026.
Ethereum’s jump mirrors a similar rise of almost 25% in Bitcoin last month. The rise came as the U.S. Treasury Department announced plans for bond buybacks, which pushed long-term yields lower, increasing liquidity, weakening the dollar and triggering strong institutional inflows.
However, the fundamental backdrop has turned less supportive after Federal Reserve Chair Kevin Warsh adopted a more hawkish stance at the Jackson Hole symposium on Friday. The market now sees a 66% probability of a Fed rate hike in September, up from 35% last week.
Adding to the more challenging backdrop, U.S. Treasury yields have pushed higher amid rising inflationary concerns as oil prices jump following an escalation of hostilities in the Middle East. So far, Ethereum has proved resilient to rising yields. However, elevated yields can dampen risk appetite.
ETH ETF inflows continue & whales accumulate
Some of that resilience is coming from spot ETFs, which continue to attract solid inflows. According to SoSoValue data, ETH ETFs recorded a 15th straight day of net inflows on Tuesday. ETH ETFs attracted $1.85 billion in net inflows in August, their best month in over a year. Institutional demand has continued and helped to support the price.
August also saw a major rotation across wallet cohorts. Investors with a balance of 10K to 100K ETH, also known as whales, accumulated 430K ETH across August, with most of that figure coming in the past two weeks as ETH surged.
Meanwhile, retail investors with balances of 100 to 1K and 1K to 10K ETH offloaded 447K and 292K ETH, respectively, with distributions accelerating in the final two weeks.
This data suggests that whales are accumulating supply from retail investors, who are potentially taking profits or moving to the sidelines at breakeven.
Separately, inflows into staking contracts have also increased, with Ethereum staking contracts adding 1.4 million ETH in August, marking their largest inflows since February 2024. With more supply locked up in staking contracts, available selling pressure is reduced, which is bullish for the price.
Ethereum technical analysis
After breaking out above the 100 EMA on ETH/USDT, Ethereum ran into resistance at 2,565 before easing back. The price is now consolidating around 2,400, bringing the RSI out of overbought territory and clearing the way for further gains.
In the coming sessions, the 50 EMA could cross above the 200 EMA, creating a bullish golden cross signal.
Buyers will look to rise above 2,550 to create a higher high and extend gains towards 3,000.
On the downside, support is seen at 2,355, a level that limited losses on August 23 and today. Should sellers take out this level, it exposes the 200 EMA at 2,175. A break below here could see sellers gain traction towards 2,000.
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