Ethereum’s price has increased by nearly 2%, to $1942, after the semiconductor stock market rebounded and renewed hopes of US-Iran negotiations restored risk asset demand.
The following is a summary of the information that you will find on this page.
- The price of Ethereum rose by nearly 2%, to $1942, as the risk-taking sentiment and technology stocks recovered.
- The whales have withdrawn and bet about $38 million worth of ETH while ETFs are increasing demand.
- Short liquidations could be triggered by a break over $1,952. This would open the door to a move towards $2,000
Ethereum moved (ETH( price) reached an intraday peak of $1953 on February 2, extending the recovery since its low in July, near $1830.
According to the Associated Press (AP), market sentiment improved following a recent AI-driven drop in Asian technology stocks. South Korea’s Kospi rose 3.6% while Japan’s Nikkei gained 3% and Taiwan’s Taiex grew 4.2%.
Samsung Electronics; SK Hynix; and Taiwan Semiconductor led the rebound After chip stocks experienced heavy losses during the previous session. Ethereum rose along with the market sector because investors returned to the high-beta asset class after the shock in the technology industry.
The oil prices fell as well, after regional mediators forced Washington and Tehran into considering a 10-day ceasefire proposal. West Texas Intermediate crude dropped to $82 a barrel while Brent fell 1.4% at $88.01. Energy prices fell, reducing immediate concerns that another shock to inflation could cause central banks to tighten their policies.
There is uncertainty about the diplomatic progress. US Central Command carried out another round On Monday night, strikes were launched against Iranian command centres, missile sites and maritime assets as well as air defenses. Iran then attacked a fuel tanker near the Strait of Hormuz. Meanwhile, Yemen’s Houthis, who are backed by Iran declared a naval embargo on Saudi Arabia.
CENTCOM said that traffic in the Strait of Hormuz was still flowing despite fighting. Since early May, the command’s forces have helped about 900 vessels transporting 450 million barrels crude through this waterway.
ETF inflows have boosted Ethereum demand
US spot Ethereum Exchange-Traded Funds reported $38.09 millions in net flows on July 20, According to SoSoValue data. BlackRock’s ETHA brought in $34.3 Million, and Fidelity FETH another $2.83Million. These products had almost $10 billion worth of net assets. This is equal to 4.5% the market cap for Ethereum.
Lookonchain, a wallet-tracking platform, also announced several major ETH transactions on Monday. After three months, a whale bought 10,501 ETH for 20 million USDC at an average cost of $1.905.
Binance credited a new wallet with 12,800 ETH (worth $24,47 million) in 24 hours. This wallet then staked all the money. Lookonchain identified a second 7,000 ETH withdraw, worth $13.46million, into the same wallet.
Binance lost a total of 19,800 ETH (worth about $38million) from the combined withdrawals. The withdrawal of funds from an exchange does not ensure long-term ownership, but subsequent stake transactions have reduced the available amount for immediate sale.
Ethereum’s price is facing a crucial test between 1,950 dollars and $2,000
Ethereum’s chart for 4 hours shows a parallel ascending channel which has led the price upwards since late June. ETH is trading near the upper-half of the channel and below the Fibonacci support at $1,952, drawn from the low in June.
If the 4-hour closed above $1.952, it would reveal the psychological $2,000 mark. The daily chart places $2,000 at a major Murrey Math support-and-resistance pivot, while the next channel objective sits near $2,080.
Ted Pillows, a financial analyst, has identified the exact same threshold for the main breakout point. noting:
“ETH is moving towards the $2,000 level. This is a major resistance zone for Ethereum, and a reclaim could result in another leg up.”
The Supertrend for the 4-hour time frame has turned bullish, and is now at $1869, just below the Fibonacci Retracement of 78.6% at $1858. Chaikin Money flow, which measures cash flow along with price movement, is at 0.27. CMF readings above zero indicate that volume sold has outweighed volume bought during this current movement.
Aroon Up is at 100% while Aroon Down is down to 7.14%. This gap indicates that ETH has recently reached a period high, and not returned to a significant low. The price is also above the rising trendline drawn since the low of June. This preserves the higher sequence.
CoinGlass’s 3-day heatmap for liquidations shows concentrated leverage of shorts between $1950 to $1970. Moving through this band may force liquidations of short positions and speed up the test for $2,000. Above $2,000, and close to $2,020 is where you will find additional liquidity.
The downside risk will increase if ETH falls below $1,952 or loses its $1,907 support. Next defenses are the Fibonacci Zone of $1 858 and Supertrend Level $1 869.
Crypto trader Daan Crypto Trades has identified $1750 as the structural invalidation threshold because it was February’s lowest point and will be a significant reversal level in 2025. In the event that the daily support was broken below $1.750, it would expose the $1.625. Next, $1.513, the lowest point of the year.
Renewing attacks in the Strait of Hormuz area could reverse oil prices and revive inflation fears. Geopolitical escalation, concentrated resistance and ETH’s failure to clear $2,000 will leave recovery at risk of another setback until ETH is able to do so.
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Source: crypto.news
