Ethereum fell 5% from $1,973 to $1,873 on July 28 after another rejection below $2,000 triggered forced selling. The drop pushed ETH through several long-liquidation clusters and into rising-wedge support near $1,870, with the next large pocket of downside liquidity sitting around $1,840–$1,850.
Ethereum traded near $1,875 on July 28, down from an intraday high close to $1,973, after buyers failed to clear the $1,975–$2,000 resistance range. The rejection trapped traders holding leveraged long positions opened in anticipation of a breakout.
ETH then moved below $1,900, activating stop-loss orders and forcing position closures, and reached approximately $1,873 before stabilizing around the lower end of the daily range. Despite the decline, the token remains above its early July low near $1,560, roughly 20% above that level, so the wider recovery has weakened but has not yet been invalidated.
Leveraged longs speed up the ETH sell-off
Derivatives positioning appears to have increased the speed of the decline. Bullish traders built exposure as Ethereum approached $2,000, leaving the market vulnerable when spot demand failed to sustain the move.
The one-week liquidation heatmap shows the price passing through multiple areas of leveraged exposure between $1,950 and $1,890, where forced closures likely added sell orders. It now shows a larger concentration of liquidity around $1,840–$1,850, although the data does not guarantee that ETH will reach the zone. Weakness across technology stocks added further pressure, as concerns about the financial returns from heavy artificial intelligence spending increased volatility across global equities.
ETH tests rising-wedge support near $1,870
Ethereum’s four-hour chart shows the price testing the lower boundary of a rising wedge near $1,870, a trendline that has supported the recovery since the middle of July. A decisive close below it would weaken the rebound and could send ETH toward the $1,850–$1,840 liquidity zone, with failure to hold that area exposing the 100-day simple moving average near $1,758.
Momentum indicators support a cautious short-term outlook. The four-hour relative strength index has fallen to 42.22, below its moving average of 57.68 but still above the oversold threshold of 30. The MACD line has dropped below its signal line, with the histogram in negative territory.
On the daily chart, ETH holds above its 20-day SMA near $1,864. Resistance sits between $1,950 and $1,975, where the recent high and the 200-day SMA near $1,954 create a stronger supply zone.
Analysts identify $1,840 as the decisive level
Crypto analyst Ted Pillows placed support around $1,840 and said: “ETH is back into its key support zone”. A breakdown below the current zone could shift attention toward approximately $1,700 and $1,530.
Market commentator Rain pointed to corporate accumulation as a potential source of longer-term demand, noting that BitMine added nearly 10,000 ETH during the previous week to reach reported holdings of approximately 5.79 million ETH. Rain also said ETH had gained about 2.4% over the week while Bitcoin declined roughly 0.7%, pushing the ETH/BTC ratio to a three-month high.
Flows into US-listed spot Ethereum exchange-traded funds remain another variable, since sustained outflows would remove demand that supported the July recovery. For now, $1,840 remains the principal downside level, while $1,950–$1,975 is the range bulls must reclaim.
Source: crypto.news
Trading involves risk.
Risk Disclaimer
