Ethereum has recently witnessed a notable resurgence, climbing over 5% in just 24 hours to surpass the $1,650 threshold once more. With a weekly increment of 8.05%, the cryptocurrency is on the path to recovery, yet remains below its pivotal $2,000 benchmark lost earlier in the year.
What Sparked the Recent Price Escalation?
The swift upturn in Ethereum’s price is closely linked to a surge of short position liquidations in the derivatives market. In the last day alone, short positions amounting to approximately $92 million opposing Ethereum were closed. On a broader scale, the overall liquidation figure for the crypto market reached over $475 million, indicating a strong trigger from the liquidation of leveraged shorts.
Taking a broader view, the futures trading volume for Ethereum jumped by nearly 29%, hitting $43.4 billion. Meanwhile, open interest surpassed $22.8 billion and options trading saw a 57% increase. The alignment between rising open interest and price confirms a continued influx of capital into Ethereum trades.
Is Technical Analysis Indicating Further Upward Move?
Indeed, as the month began, Ethereum’s monthly chart displayed the TD Sequential buy signal. This influential indicator, previously observed in September 2022 and anticipated in March 2025, marked the onset of substantial rallies of 235% and 182%. The current signal is drawing substantial interest among traders.
Recent historical performances have highlighted the bullish potential following such buy signals, remarked Ali Martinez.
Martinez further pointed out that Ethereum’s rebound from $1,549 coincided with the negative 1.0 sigma band of the MVRV extreme deviation model, which tracks historically low price zones.
Will Institutional Investors Make a Big Move?
For institutional investors, Ethereum ETFs marked a rather cautious phase with notable outflows. Since mid-June, there has been a net withdrawal of $358.3 million from spot Ethereum ETFs, signaling that, despite the price revival, large-scale accumulation hasn’t yet begun.
Ted Pillows noted the importance of Ethereum reclaiming the $1,700-$1,750 range for confirming bullish momentum.
Key levels to monitor include:
- $1,700 as a resistance point; breaking it leads to $1,800-$1,850.
- $1,600 as a potential support; failing this could revisit $1,550.
In a significant market development, the crypto whale known as “Machi Big Brother” increased his Ethereum holdings, moving away from some previously held NFT assets, underpinning the notion that strategic players view present levels as favorable entry points.
