Ethereum price climbed more than 5% over the past 24 hours, reclaiming the $1,650 level after weeks of persistent selling pressure. The second-largest cryptocurrency is beginning to stabilize near a crucial support zone as buyers return to the market. With ETH attempting to recover from its recent correction, traders are closely watching whether the current rebound can extend toward the $1,800 resistance area or face another rejection in the weeks ahead.
Ethereum Shorts Crushed as Market Sentiment Improves
The broader crypto market staged a strong recovery during the past 24 hours, with Bitcoin reclaiming the $60,000 level and Ethereum emerging as one of the major beneficiaries.
More than $475 million worth of crypto positions were liquidated across the market, while Ethereum alone accounted for over $92 million in forced liquidations. Short sellers suffered the majority of these losses as ETH quickly moved higher and triggered a wave of short covering. The sudden reversal suggests bearish positioning had become overcrowded near recent lows, allowing buyers to regain control as sentiment improved across the market.
Futures Data Shows Traders Returning to Ethereum
Ethereum’s derivatives market is also beginning to show signs of renewed confidence. ETH futures volume surged nearly 29% to $43.4 billion, while open interest climbed above $22.8 billion. Options activity strengthened considerably as options volume jumped nearly 57% to $915 million.
The rise in both price and open interest indicates that fresh capital is entering the market rather than existing traders simply closing positions. Increasing derivatives participation often signals stronger conviction among market participants. Funding rates have also remained positive, suggesting bullish traders are increasingly willing to pay premiums to maintain long positions.
Institutional Demand and Whale Activity Support ETH
Investor sentiment has also improved amid growing institutional participation in Ethereum. Market participants closely followed reports that prominent crypto investor Machi Big Brother reportedly increased exposure to ETH after reducing positions in several NFT assets. The move added to growing speculation that large investors are viewing current prices as attractive accumulation levels.
Meanwhile, several institutional initiatives focused on Ethereum continue to support the asset’s long-term investment narrative as demand for ETH-based products gradually expands.
Ethereum Price Analysis: Can ETH Reclaim $1,800?
Ethereum remains below its larger downtrend structure, but the recent recovery has significantly improved short-term momentum. On the daily chart, ETH price successfully defended the $1,550 support region after weeks of heavy selling. Buyers have managed to push the price back above the $1,650 area, which now acts as immediate support.
The first major resistance sits near $1,700. A decisive move above this level could trigger further buying pressure toward the $1,800 zone. The $1,800-$1,850 region remains the most important resistance area for bulls. This level previously acted as strong support before turning into resistance following the recent breakdown. The 50-day moving average also continues to hover near this zone, making it a critical area for trend confirmation. On the downside, failure to hold above $1,600 could expose ETH to another retest of the $1,550 support. A breakdown below that region may invalidate the current recovery and shift momentum back toward sellers.
Bottom Line
Ethereum has finally shown signs of strength after weeks of weakness, but bulls still have work to do. While liquidations, rising futures activity, and renewed buying interest have supported the latest rebound, ETH must reclaim $1,800 to confirm a larger recovery trend. Until then, the current move remains a crucial test for both buyers and sellers in July.
