Ethereum reclaimed $1,900 on July 29 after rebounding from an intraday low near $1,856, with US spot ETF inflows and short liquidations supporting the move. Morgan Stanley's newly listed Ethereum fund drew $5.15 million on its first trading session. Resistance now sits close to $1,970, ahead of the Federal Reserve's rate decision.
Ethereum traded near $1,913, up about 2% over the past 24 hours, after defending the $1,850–$1,880 region. The token had traded between approximately $1,856 and $1,926 during the session.
ETH first reclaimed the daily Bollinger Band midpoint at $1,874 before moving back above the psychological $1,900 level. Buying pressure improved alongside it, with the Chaikin Money Flow reading at 0.08 — above the neutral line, though still below its July high, which suggests demand has not yet reached breakout strength.
Morgan Stanley's MSSE draws $5.15 million on debut
The rally coincided with the first trading session for the Morgan Stanley Ethereum Trust, which listed on NYSE Arca under the ticker MSSE. The fund pulled in $5.15 million in net inflows and $19.03 million in first-day trading volume.
BlackRock's ETHB recorded the largest daily inflow at $5.91 million, while combined spot Ethereum ETF inflows reached $14.53 million. US-listed Ethereum funds held about $10.5 billion in net assets after the session, equal to 4.53% of Ethereum's market capitalization, with cumulative net inflows of approximately $11.21 billion according to SoSoValue.
However, ETF inflows alone do not prove that institutions caused the full price move. Positive flows instead arrived as ETH tested a major support area, providing additional spot demand when liquidity was relatively thin.
Short liquidations outpaced long liquidations over 24 hours
Derivative positioning added momentum to the recovery. Ethereum short liquidations reached $37.68 million over 24 hours, slightly exceeding the $36.66 million recorded for leveraged long positions.
The largest single liquidation was a $4.74 million ETH-USDT position on Binance, according to CoinGlass data. Forced closures of short positions require exchanges to buy back contracts, which can accelerate an existing price recovery.
Nearby overhead concentration sits around $1,938–$1,943, with additional liquidity near $1,955–$1,960. A move through $1,960 could then expose the $1,970 Bollinger Band resistance and the $2,000 psychological threshold.
Charts keep $1,970 resistance in view
The 4-hour chart places Ethereum inside an ascending parallel channel that has guided price since early July. Its Aroon Up indicator stands at 64.29%, compared with an Aroon Down reading of 7.14%, a difference that suggests the recent bullish trend retains control despite ETH's failure to hold its July 27 high near $1,970.
Crypto analyst Michaël van de Poppe identified $1,800 as the level Ethereum must preserve for the recovery to continue: "I'd preferably see it hold above $1,800."
Fed decision is the next macro test
Markets largely expect the central bank to keep its target range at 3.50%–3.75%, but uncertainty over a possible quarter-point increase has risen. Policymakers remain divided as they balance elevated inflation against easing energy prices.
A hold accompanied by a less hawkish statement could support ETH's attempt to clear $1,970, while a surprise increase or firm warning about future tightening would raise the risk of another decline toward $1,880 or $1,800.
Source: crypto.news
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