Ethereum Stabilizes Above $2,400 as Profit-Taking Slows Rally

Ethereum's price has stabilized above the $2,400 mark this week, trading near $2,500 after a significant rally, though upward momentum appears to be slowing as investors take profits. The cryptocurrency's recovery has been underpinned by strong institutional demand through spot ETFs and broader market liquidity, but derivatives activity and network usage have yet to confirm the strength of the uptrend. The rally gained traction in late August, with ETH climbing from approximately $2,326 on August 21 to a weekly peak around $2,566 before consolidating. This move was partly fueled by a massive liquidation event that saw nearly $3 billion in leveraged positions eliminated, with short positions accounting for roughly 92% of the total. The event represented the most significant concentrated liquidation since November 2021 and contributed to an approximate 18% price increase for ETH during that episode. Institutional demand has provided a steady foundation for the price action. US spot Ethereum ETFs recorded net inflows of $234.51 million on August 27, extending an inflow streak to nine consecutive trading days. This brought weekly inflows to $722.