Stablecoin supply is expanding again, new funds are returning to the crypto market.
Ethereum climbed back above $2,500 on Thursday, currently trading around $2,510. Behind the rise is primarily the recovery in stablecoin supply growth: the total market capitalization of stablecoins has increased by approximately $4.1 billion over the past two weeks, with $2.37 billion added in the last seven days. This marks the first two-week expansion since mid-May; previously, from mid-May to August 11, the stablecoin market had contracted by about $16.1 billion.
Stablecoin inflows typically indicate increased available purchasing power within the crypto market, giving investors more funds to buy assets like BTC and ETH; conversely, outflows often signal funds exiting after taking profits or cutting losses. Therefore, this round of supply recovery provides a more solid capital foundation for ETH's return to $2,500 than a mere short squeeze.
ETH Spot ETFs Attract Funds for Eight Consecutive Days, Staking Locks 34.7% of Supply
Traditional capital is also turning bullish. Data from SoSoValue shows that U.S. spot Ethereum ETFs have seen net inflows for eight consecutive trading days, totaling $1.18 billion. This is the longest streak of inflows since April and the largest eight-day capital inflow since October of last year.
Meanwhile, the amount of ETH staked continues to rise, reaching 42.4 million coins, accounting for 34.7% of the total supply. More ETH being locked in staking reduces the immediate circulating supply in the market. When stablecoin purchasing power, ETF demand, and staking lock-ups rise simultaneously, the supply-demand structure becomes more favorable for prices. In the last 24 hours, Ethereum liquidation amounts reached $122.9 million, with short liquidations accounting for $77 million, providing additional momentum for the break above $2,500.
$2,430 is the Short-Term Defense Line, $2,744 Decides Whether a Further Rally is Possible
The daily chart structure remains bullish, with ETH still trading significantly above both long and short-term Exponential Moving Averages. However, momentum is becoming overheated: the 14-day RSI is near 77, and the Stochastic oscillator has risen above 90, indicating the trend is still strong but continued chasing of the rally may face volatility or a pullback.
The first support below lies at $2,432, with further support at $2,223, and the $2,172 to $2,151 range. If these levels fail to hold, the medium-term moving average support is at $2,043 and $2,005. The first key resistance above is at $2,744, followed by $2,883. Only a clear daily close above $2,744 could potentially open the door for a new leg higher. If it fails to break through, market focus will shift to whether buyers can defend the support zone below $2,500.
