Ethereum has gained 30% since August 19 but remains stuck below $2,500, while its Binance funding rate has climbed to a one-year high. Bitmine Chairman Tom Lee says the pattern mirrors rallies from July 2021 and May 2025, and spot Ethereum ETFs are on pace for their best month in a year.
Tom Lee Points to a Familiar Setup
Ether trades below resistance at $2,500 as last week's rally cools off, even after climbing 30% since August 19. Tom Lee disclosed that Bitmine bought 34,000 ETH between August 17 and August 21, and said the move produced ETH's highest weekly gain since May 2025.
He noted that a similar gain occurred in July 2021, after which ETH went on to gain 167%. In May 2025, Ethereum gained 170% following another large green weekly candle. Lee expects similar gains this time, as macro tailwinds such as looming $1 trillion Treasury buybacks boost liquidity and lift demand for risk assets.
Funding Rate Hits Its Highest Level in a Year
Data from CryptoQuant shows Ethereum's funding rate on Binance has risen to 0.01, the highest reading since August 2025. The surge shows long buyers paying funding fees to short sellers to keep their positions open. However, these long positions also pose a risk to Ethereum if the price drops unexpectedly and forces buyers to close out.
CryptoQuant analyst Arab Chain notes that the rising funding rate coincides with improved risk appetite drawing traders to spot products.
Bulls Test the 200-Day EMA
Ethereum is testing resistance at its 200-day EMA of $2,455. ETH closed above this level last week, but needs three more consecutive closes above it to confirm a bullish long-term forecast. If Ethereum moves above $2,455, the price could reach its 2026 high of $3,423. If that move does not happen, the price could drop to the psychological support level of $2,000.
The RSI reading of 59 suggests momentum still favors bulls, though it needs to print a higher high to confirm the uptrend. Ethereum also needs to hold above weekly support at $2,373, since losing that level could push the price back toward $2,000.
Ether ETFs Head for Their Best Month in a Year
Data from SoSoValue shows Ethereum ETFs have recorded $1.06 billion in inflows so far in August 2026, the highest monthly total since August 2025. BlackRock's iShares Ethereum Trust led with $814 million in inflows, followed by Fidelity's Ethereum Fund with $81 million. Ethereum ETFs now hold total net assets of $14.74 billion, equal to 4.93% of ETH's market cap.
Source: CoinGape
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