Ethereum's rebound toward $2,000 has stalled below resistance, and both the price charts and the derivatives market now favor the bears. Long liquidations, a cooling funding rate, and a bearish swing structure point to a possible retest of lower levels.
Ethereum's climb toward $2,000 has lost momentum, and the setup now leans bearish. ETH fell 1.77% over the past 24 hours.
Open interest slid 3.2%. Daily trading volume dipped just over 6% over the same period. CoinGlass data suggested long liquidations might help explain the drop.
Bullish derivatives traders absorbed around $67 million in liquidations measured from July 22. Those forced sell orders in perpetual markets added to the pressure on ETH.
The funding rate cools off
The funding rate stayed positive but kept sliding. CryptoQuant data showed its 7-day moving average easing from +0.0088% to +0.0054% since the first week of July, a mildly positive reading.
A related gauge, the taker buy/sell ratio, weighs aggressive buying against selling. This metric fell deep into negative territory recently. Its 7-day average, however, has not slipped below zero the way it did in May.
The charts stay bearish
AMBCrypto pointed to whale accumulation and improved ETF demand. The network's validator queue has dropped to zero with no waiting time, signaling conviction from long-term stakers.
Price action tells a different story. On the 1-day timeframe the swing structure remains firmly bearish. A breakdown below the February low at $1,742 in early June confirmed that trend, and the current bounce has yet to reach key Fibonacci retracement levels.
What the levels say
Measured from the late-May to early-June selloff, ETH raced from $2,043 down to $1,510. Earlier this week, the 78.6% retracement level was tested. Bulls then faced a setback at resistance near $1,929.
With the 4-hour and 1-day timeframes aligned, a price drop toward $1,510 appeared likely. A rally beyond $2,043 would invalidate the bearish case.
Source: AMBCrypto
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