Ethereum has climbed 27% over the past seven days after breaking above $2,000, and the weekly outlook has turned bullish with a medium-term target of $2,800. Heavy ETF inflows and easing regulatory expectations are driving the move, though an overbought weekly RSI signals a possible near-term pullback toward $2,200 first.
ETH breaks $2,000 as short sellers get squeezed
Ethereum has gained 27% over the past seven days after moving above the psychologically important $2,000 level. The breakout triggered substantial short liquidations, adding momentum to the rally.
Improving regulatory expectations in the United States also supported the broader crypto market, as the SEC's proposed framework for crypto assets could give projects more flexibility to raise capital without following the traditional securities-listing process. Meanwhile, the Treasury Department plans to double its bond buybacks starting in September, a program expected to inject billions of dollars of liquidity into financial markets.
Ether ETFs post their strongest month since August 2025
Institutional demand has strengthened alongside the price recovery. Investors poured more than $1.2 billion into Ethereum-linked ETFs during August, according to SoSoValue — the strongest monthly inflow since August 2025, when ETH reached its latest record high.
Sentiment has shifted sharply too. The Crypto Fear and Greed Index rose from below 40 to 80, its highest reading since December 2024, when Ethereum traded near $4,000. However, elevated optimism can also increase the possibility of a short-term correction.
Ethereum's on-chain data supports the improving picture, but a key volume signal has yet to confirm it. The gap between the seven-day and 30-day trading-volume moving averages has narrowed following the renewed buying and the recent short squeeze; a crossover of the two would provide stronger confirmation, since this signal has marked the start of Ethereum's previous bullish cycles over the past three years.
$2,200 is the level to watch before $2,800
Ethereum's planned Glamsterdam upgrade could become the market's next major catalyst if the rollout succeeds, similar to the effect the Pectra upgrade had in April 2025, when it coincided with improving market momentum.
The weekly Ethereum outlook has shifted from bearish to bullish, targeting $2,800, reversing an earlier bearish projection of $1,600 for the first half of 2026. A confirmed break above $2,200 is viewed as a potential buy signal, with historical price action suggesting ETH could then consolidate between $2,200 and $2,800, resembling the pattern seen at the start of the April-May 2025 rally.
Momentum indicators nevertheless point to a possible near-term pullback: Ethereum's weekly Relative Strength Index has reached 88, deep in overbought territory. A correction toward $2,200 would relieve some of that pressure and could build a stronger base for another advance, while failure to hold that level would weaken the current bullish setup.
If Ethereum holds above $2,200 and then clears the $2,800 resistance, historical patterns suggest a longer-term target near $5,400 — though that projection remains conditional on continued ETF demand, supportive liquidity conditions, successful network upgrades, and sustained trading momentum.
Source: CoinJournal
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