Ethereum Surges Over 11% in a Day—What’s Driving the Rally?

▲ Ethereum (ETH) © Go Da-sol

Ethereum (ETH) surged more than 11% in a single day, reclaiming the $2,000 level, but analysts say the rally appears to be the result of improving macro conditions and a technical rebound rather than any single catalyst.

According to CoinMarketCap on February 25 (local time), Ethereum rose 11.79% over the past 24 hours to trade at $2,071.74. This marks a relatively stronger performance compared to Bitcoin (BTC), which gained 7.14% during the same period. The total cryptocurrency market capitalization increased by 6.95%, reflecting a broad-based rally, while the S&P 500 index also rose 0.66%, signaling improved risk appetite.

The primary driver behind the surge was a broad market rally. Major cryptocurrencies rebounded simultaneously, and traditional financial markets also strengthened, leading to capital inflows driven by macro factors. As a highly liquid asset, Ethereum emerged as a key beneficiary. The move is interpreted as a beta-driven upswing aligned with an overall shift to a “risk-on” environment rather than any project-specific development.

Technical factors further amplified the gains. Ethereum’s Relative Strength Index (RSI14) had fallen to 30.31, entering deeply oversold territory. Trading volume then jumped 23.66%, accelerating the rebound. The price reclaimed its seven-day simple moving average at $1,930.17. The setup reflects a typical technical rebound, fueled by short liquidations and dip-buying following an extended decline.

The short-term key level to watch is the 50-day simple moving average at $2,186.04. A breakout above this resistance could open the door to further gains toward the 38.2% Fibonacci retracement level at $2,547. Conversely, if the psychological support at $2,000 breaks down, a retest of the recent low at $1,749 cannot be ruled out. The average funding rate remains negative at -0.0023%, indicating that short positions are paying long positions. Should the rebound continue, the possibility of an additional short squeeze—buying pressure triggered by the liquidation or covering of short positions—remains on the table.

Overall, the sharp rally appears to be the result of improved macro conditions combined with an oversold rebound. While the short-term structure leans cautiously bullish, it is premature to conclude that the medium-term downtrend has fully reversed. The key lies in whether Ethereum can break above and sustain levels beyond $2,186 on a daily closing basis, which would help confirm the continuation of the rebound.

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