Key Highlights
- Ethereum has surged over 5% within 24 hours, successfully recovering the $1,650 support threshold
- Approximately $92 million worth of short positions in ETH faced liquidation, accelerating the price recovery
- Institutional sentiment appears weak with spot ETF net outflows reaching -$358.3 million from June 17 onward
- A historically significant TD Sequential monthly buy indication has emerged — identical signals previously triggered 235% and 182% price surges
- Market analyst Ted Pillows emphasizes ETH must break through $1,700–$1,750 territory to prevent sliding back to annual lows
The second-largest digital asset by market capitalization has experienced a sharp rebound exceeding 5% during the last 24-hour period, successfully climbing back above the crucial $1,650 threshold following multiple weeks of consistent downward pressure. Ethereum now shows an 8.05% gain across the trailing seven-day period, despite trading significantly beneath the $2,000 support zone it surrendered in early 2026.
A significant catalyst behind this price recovery came from mass liquidations in the derivatives market. Traders holding short positions saw over $92 million in ETH shorts forcibly closed as rapid price appreciation triggered a squeeze. The broader cryptocurrency ecosystem witnessed liquidations exceeding $475 million throughout this identical timeframe.
Activity in Ethereum’s derivatives sector experienced notable expansion. Trading volume for ETH futures contracts increased by nearly 29%, reaching $43.4 billion, while open interest advanced past $22.8 billion. Options trading volume surged approximately 57% to $915 million. The combination of climbing open interest paired with upward price movement indicates new money flowing into positions rather than merely short covering.
Funding rates have maintained positive territory, indicating bullish position holders are compensating those on the opposite side. This reflects near-term optimism among leveraged traders.
Significant Monthly Chart Indicator Captures Market Attention
Digital asset analyst Ali Martinez highlighted on X that July commenced with a buy indication from the TD Sequential indicator on the monthly timeframe. This identical pattern materialized in September 2022 and March 2025. Following those previous occurrences, Ethereum experienced rallies of 235% and 182% respectively. Martinez’s observation has generated considerable interest considering ETH’s recent bounce from the $1,549 price point, which corresponds with the -1.0σ level on Ethereum’s MVRV extreme deviation 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, spot Ethereum flows paint a contrasting picture. From June 17 forward, Ethereum spot ETF products have registered cumulative net withdrawals totaling $358.3 million, signaling hesitant commitment from institutional market participants.
Critical Price Zones Under Surveillance
Market analyst Ted Pillows shared on X that while ETH has regained ground above $1,600, a meaningful recovery requires recapturing the $1,700–$1,750 territory to validate any sustainable upward momentum. Failing this, he warned ETH faces potential decline toward its yearly bottom.
$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
Technical analysis reveals the next substantial barrier positioned at $1,700, with additional resistance clustering in the $1,800–$1,850 region where the 50-day moving average currently resides. On the downside, a breach below $1,600 could trigger another test of the $1,550 support foundation.
Large holder movements have also captured market observers’ focus. Notable cryptocurrency investor Machi Big Brother allegedly expanded ETH holdings after reducing exposure to various NFT holdings, fueling theories that major players view present valuations as attractive accumulation opportunities.
As of July 2, 2026, ETH is changing hands near $1,650, with the $1,700 threshold representing the immediate challenge for buyers.
