Ethereum traded at $1,927 on July 23, remaining below the key $2,000 level despite rebounding 27% from June’s low around $1,514. The asset reached an intraday high of $1,941, but repeated rejections near $1,955 have prevented any sustained move beyond the psychological threshold.
Inflation fears rise with energy costs
Recent volatility in energy markets has exerted downward pressure on Ethereum’s price. Five consecutive sessions of rising crude oil prices followed attacks on Saudi Arabian oil infrastructure by Houthi militants, fueling concerns of supply disruptions in the Middle East. On the same day, West Texas Intermediate oil climbed above $90 per barrel, heightening global inflation risks.
Elevated energy prices have led market observers to expect tighter US monetary policy. Data from CME’s FedWatch tool indicated that the implied chance of a Federal Reserve rate hike in September climbed to 79%, up from 68%. Such an outlook generally weighs on risk assets, including cryptocurrencies.
ETF inflows provide support for Ethereum
Despite challenging macroeconomic signals, institutional capital continued to enter Ethereum. Analytics firm SoSoValue reported net inflows of $72.64 million into US spot Ethereum exchange-traded funds (ETFs) on July 22. BlackRock’s iShares Ethereum Trust, one of the world’s largest asset managers, contributed $53.47 million of this total.
Spot demand for Ethereum remains strong, and the key support area has held. Some analysts noted that if this persists, the next upward move could start soon, with $2,030 as an initial target and further resistance around $2,400.
Independent market observers also highlighted Ethereum’s resilience. Trader Daan Crypto Trades pointed out that ETH has recently outperformed Bitcoin, suggesting a potential rotation in ETH/BTC market dominance if the trend continues.
| ETF Product | Net Inflows (July 22) |
|---|---|
| BlackRock iShares Ethereum Trust | $53.47 million |
| All US Spot Ethereum ETFs | $72.64 million |
On-chain signals and upcoming challenges
Data from research platform CryptoQuant showed that ETH is trading 17% below its realized price of about $2,300, a zone historically aligned with periods of undervaluation. However, only two out of five on-chain bottom indicators tracked by CryptoQuant have confirmed a market bottom so far.
BitMEX, a major derivatives exchange that has served more than 2 million users since 2014, announced it will cease operations on September 23. The closure adds uncertainty for traders relying on leverage and affects overall market liquidity.
Figures from Staking Rewards indicated that 34% of Ethereum’s circulating supply is now locked in staking contracts. Bitmine Immersion Technologies, directed by Tom Lee, accumulated 325,000 ETH over the past month and aims to control 5% of the total ETH supply.
For Ethereum to regain bullish momentum, chart analysts point to a necessary close above $1,955 on the 4-hour chart, which could target the $2,000–$2,030 area. A drop below $1,860 may disrupt the ongoing recovery pattern.
Mini dictionary: Realized price, a metric defining the average price at which each coin in the network was last moved, helps gauge whether market participants are predominantly in profit or loss at current levels.
