Woofun AI reports that a surge in Ethereum prices was directly catalyzed by the U.S. Department of the Treasury's expansion of sovereign debt buybacks, lifting the asset co-founded by Vitalik Buterin and igniting a broader rally across altcoins.

On Wednesday, ETH breached the $2,000 threshold, reaching an intraday high of $2,112, marking a nearly 10% increase that ended a consolidation period below $1,900 dating back to August 8. The primary driver was the Treasury's announcement of $4 billion in additional sovereign debt buybacks, which propelled ETH's market capitalization from under $230 billion to $251 billion within the same trading session.

The momentum extended to other assets, pushing the total altcoin market capitalization past the $1 trillion milestone for the first time in nearly a month. Zcash (ZEC) led privacy coins with a 9% gain, rising from $503 to $557 and reaching a $9.3 billion valuation, outperforming Monero (XMR), which saw a 0.9% pullback.

Meanwhile, high-cap tokens Solana (SOL) and XRP posted gains exceeding 6%, Stellar (XLM) climbed 7.5%, and Tron (TRX) experienced a marginal 0.7% decline.

Woofun AI data shows that Michaël van de Poppe, Chief Investment Officer at MN Fund, identified this move as a significant technical breakout, noting that holding above the $2,000 support level could open paths to resistance zones at $2,250, $2,465, and $2,900. This price action coincided with over $1.3 billion in short position liquidations for Bitcoin, highlighting the intense leverage unwinding accompanying the macro-driven rally.

Future price stability will depend on the liquidity tone set by upcoming U.S. Treasury auctions and debt buyback schedules. These macroeconomic variables will determine whether current support levels hold firm in the coming weeks.