Ethereum surged 18% over a 24-hour period, breaking out of a five-week consolidation and extending its weekly gains to 19.65%. The price cleared the $2,003 resistance level to reach $2,252.80, while trading volume experienced a 402% increase to support the rally.
Technical indicators reflected the rapid price movement. The Relative Strength Index (RSI) rose to 92.14, pointing to stretched momentum following the fast increase. Additionally, the Moving Average Convergence Divergence (MACD) increased sharply, supporting the acceleration as ETH moved into a wider trading area.
Market participants are now watching several critical price boundaries. Holding the $2,003 level is seen as essential for preserving the new market structure and keeping buyers in control, whereas losing that level would push ETH back into its former range. Sellers previously defended the April supply level at $2,426.30, and ETH was approaching the $2,431 to $2,500 range, which marks a previous high-price area with significant trading volume and a key swing high.
Sustained volume remains crucial for absorbing overhead supply as prices return to these former high-trading areas. Analysts note that a gradual reset of the RSI toward the 60 to 70 range, alongside the formation of higher lows during consolidation, could provide a cooling-off period for momentum without undermining the broader rally. If buying interest successfully absorbs selling pressure above $2,500, attention could shift toward the $2,636 zone.
The resistance test also highlighted a contest between buyers and leveraged traders. On August 19, Ethereum's hourly Taker Buy Volume reached $2.55 billion, marking the third-highest hourly reading since February 7 and indicating that buyers were accepting higher prices to fill orders. However, Lookonchain data showed that two Hyperliquid whales hold combined short positions of 50,838 ETH, valued at approximately $98 million, with one liquidation level sitting near $2,273. Continued buying could trigger forced short closures, while sellers absorbing those orders could weaken underlying momentum.
