Key Highlights
- Ethereum has surged over 5% in the last 24 hours, successfully recapturing the crucial $1,650 threshold
- A massive liquidation event eliminated over $92 million in short positions, accelerating the upward movement
- Institutional appetite remains tepid with spot ETF outflows totaling -$358.3 million from June 17 onward
- The TD Sequential indicator has triggered a monthly buy signal—historically, this pattern led to gains of 235% and 182% in previous occurrences
- Crypto analyst Ted Pillows emphasizes that ETH needs to break above $1,700–$1,750 to prevent another decline toward yearly lows
The world’s second-largest digital asset by market capitalization has experienced a notable resurgence, climbing more than 5% during the previous 24-hour period. This upward momentum has carried Ethereum back above the psychologically important $1,650 threshold following an extended period of downward pressure. Week-over-week, the asset has appreciated 8.05%, though it continues trading significantly beneath the $2,000 support zone that was lost earlier this year.
A substantial catalyst behind this price action was an aggressive liquidation cascade. As Ethereum’s value accelerated upward, more than $92 million worth of bearish positions were forcibly closed, creating a classic short squeeze scenario. This liquidation event was part of a broader market phenomenon, with digital asset derivatives markets experiencing over $475 million in total liquidations during the same timeframe.
Trading activity in Ethereum’s derivatives ecosystem showed significant expansion. Futures contract volume increased by approximately 29%, reaching $43.4 billion, while open interest surpassed the $22.8 billion threshold. Meanwhile, options trading volume experienced an even sharper spike, jumping nearly 57% to reach $915 million. The simultaneous rise in both open interest and price typically indicates new capital deployment rather than mere position closures.
Market sentiment indicators suggest continued optimism among leveraged traders. Funding rates have maintained positive territory, indicating that bullish position holders are willing to pay premiums to maintain their long exposure—a reflection of near-term confidence in upward price potential.
Historic Technical Indicator Captures Market Attention
Prominent cryptocurrency analyst Ali Martinez highlighted on social media platform X that July commenced with a buy signal from the TD Sequential indicator on the monthly timeframe. This technical pattern previously emerged in September 2022 and March 2025, after which Ethereum experienced rallies of 235% and 182% respectively. The observation has generated considerable discussion, particularly since ETH’s recent recovery from the $1,549 level aligns with the -1.0σ band according to Ethereum’s MVRV extreme deviation pricing framework.
ETHEREUM: BULLISH REVERSAL SIGNAL
The month of July has officially kicked off with a massive technical signal. The Tom DeMark (TD) Sequential indicator has just printed a buy signal on Ethereum’s monthly chart.
While a lot of volatility can play out within a newly opened… https://t.co/LNkygeYlUV pic.twitter.com/U8t1iKl3Th
— Ali Charts (@alicharts) July 2, 2026
However, the institutional investment picture presents a more cautious narrative. Ethereum spot exchange-traded funds have experienced cumulative net outflows of $358.3 million since June 17, suggesting hesitation among institutional participants and larger capital allocators.
Critical Price Thresholds Under Scrutiny
Market analyst Ted Pillows noted in a social media update that while Ethereum has successfully moved back above $1,600, the real challenge lies ahead. He emphasized that reclaiming the $1,700–$1,750 range is essential to validate any sustained bullish momentum. Failure to achieve this breakthrough could result in Ethereum retreating back toward its yearly lows.
$ETH is back above the $1,600 level.
Ethereum needs to reclaim the $1,700-$1,750 level for any strong upside; otherwise, ETH will drop towards yearly lows again. pic.twitter.com/djmswISyH9
— Ted (@TedPillows) July 2, 2026
From a technical standpoint, the primary resistance barrier is positioned at $1,700, with a secondary zone between $1,800 and $1,850 where the 50-day moving average currently resides. On the support side, a breach below $1,600 would likely trigger a retest of the $1,550 level.
Large holder behavior has also become a focal point for market observers. Reports indicate that well-known crypto investor Machi Big Brother has expanded ETH holdings after reducing exposure to various NFT projects, fueling conjecture that sophisticated investors view current price levels as attractive accumulation opportunities.
As of July 2, 2026, Ethereum is changing hands near $1,650, with the $1,700 mark representing the critical near-term challenge for bullish participants.
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