Ethereum surged nearly 18% during Wednesday’s breakout, briefly approaching $2,300 after weeks of sideways trading.
ETH later eased toward the $2,200-$2,300 area, but the move marked a sharp shift in momentum after the token spent much of the past month around $1,800–$1,950.
The rally triggered roughly $1.1 billion in ETH liquidations, with short positions accounting for most of the losses as bearish traders were forced to buy back into the rising market.
Treasury Buybacks Help Trigger ETH Breakout
The broader crypto rally accelerated after the U.S. Treasury doubled several planned buyback operations for long-dated government debt from $2 billion to at least $4 billion.
The announcement pushed long-term Treasury yields lower and boosted risk assets.
Crypto sentiment also benefited from Washington. President Donald Trump renewed calls for the U.S. to remain a global crypto leader and urged Congress to advance the CLARITY Act.
Once Ethereum cleared its recent range, short covering accelerated the move. Similar ETH breakouts have previously put the $2,500 region in focus.
$2,300-$2,500 Becomes the Next Test
Ethereum has also returned to an important on-chain area near its realized price, which sits around $2,300. That level represents the average cost basis of ETH moved on-chain and can act as resistance after prolonged market weakness.
A sustained break above $2,300 would strengthen the recovery case and put $2,400-$2,500 in focus. The latter has already appeared as a key target in recent Ethereum forecasts.
Momentum is stretched after the sharp rally, however, increasing the risk of short-term profit-taking.
On the downside, the $2,100-$2,150 area now becomes the first important support zone. Holding above it would suggest Ethereum has successfully turned its previous resistance into support.
For now, ETH has clearly broken out of its month-long range. The next question is whether spot demand can sustain the move after the short squeeze fades.