Ethereum rebounded above $1,900, supported by increased buying from large holders and reinforced by the emergence of bullish divergence on technical charts. Data from Brave New Coin puts Ethereum’s current value near $1,907, representing a 1.32% gain over the last 24 hours.
Bullish Divergence and Key Price Levels
Recent market action shows Ethereum defending its lows as the Relative Strength Index (RSI) registered a higher low, creating a bullish divergence. Chart analyst Chiefra pinpointed $1,894 as the key confirmation area for buyers. Since retaking this level, momentum appears to have improved, setting up Ethereum for a further push higher within its recent trading range.
Major resistance remains between $1,920 and $1,955, a region that has triggered repeated selling over the past month. Sustaining price above $1,894 is viewed as crucial for short-term bullish scenarios, while a failure at this level could see a return to the $1,860 area.
Chiefra identified $1,894 as a critical support zone, noting that Ethereum’s resilience above this mark has improved the bullish outlook. Retaking this level has given buyers an opportunity to reclaim higher price targets.
Smart Money Activity and Accumulation
Investor attention has shifted to high-volume holders following the reported purchase of $6.39 million worth of Ethereum by Arthur Hayes, a prominent crypto entrepreneur and co-founder of BitMEX. Hayes’ acquisitions since July 15 have brought his total accumulation to approximately 7,213 ETH at an average entry of $1,923. Despite this, the position currently reflects an unrealized loss of about $301,000 due to volatility in market prices.
A consistent move above $1,923 could return this accumulation to break-even and potentially bolster overall market sentiment.
Mini dictionary: Arthur Hayes, a well-known figure in the cryptocurrency industry, is the co-founder and former CEO of BitMEX, a derivatives trading platform popular among advanced traders for its leveraged trading features.
Testing the Upper Channel and the Breakout Zone
On higher timeframes, Ethereum is recovering toward the upper edge of a broad descending channel that has guided price action since previous highs. Analyst Gordon emphasized $2,000 as the level that could confirm a significant structural change in market direction. A breakout above $2,000 would mark a shift from short-term recovery to the early stages of trend reversal.
To achieve this, Ethereum first needs to deliver a decisive daily close above the $1,950-$2,000 range. Persistent resistance at these levels would keep the cryptocurrency’s price inside the channel, delaying wider confirmation of a new uptrend. Should a breakout occur, attention could pivot to subsequent targets at $2,150, $2,300, and $2,500.
| Key Resistance | Key Support | Upside Target |
|---|---|---|
| $1,920-$2,000 | $1,894, $1,861 (CME gap) | $2,150, $2,300-$2,500 |
Gordon underscored the significance of the $2,000 area, stating that a decisive breakout above this level could transform Ethereum’s trend into a broader upward move, signaling the end of the extended downtrend channel.
CME Gap Brings Short-Term Risks
Despite recent improvements, Ethereum faces a short-term risk tied to an unfilled gap on the Chicago Mercantile Exchange (CME) chart near $1,861. Analyst CryptoJack pointed out that these gaps, while not always closed immediately, are often monitored by traders seeking potential retracement zones in volatile markets.
The gap closely coincides with a previous support area. Should market weakness drag Ethereum’s price lower, the $1,860 region is seen as a significant test. A quick dip into this support, followed by a rebound, would not necessarily disrupt the positive structure, but sustained trading beneath $1,860 could expose the coin to deeper support levels between $1,800 and $1,745.
Mini dictionary: CME gap refers to a price difference on Ethereum futures charts traded on the Chicago Mercantile Exchange, which can occur when the market opens higher or lower than the previous close. Many technical traders watch these gaps as possible price targets for retracement.
Outlook: $2,000 Is the Next Decisive Test
Ethereum’s immediate outlook hinges on clearing the $1,950-$2,000 resistance. Surpassing this range could accelerate the momentum towards $2,150 and potentially higher, with $2,300 to $2,500 as subsequent targets. Maintaining support at $1,894 remains important for buyers, while a fall through $1,861 would heighten bearish risks.
The combination of technical signals, large-holder accumulation, and improved price structure has fostered cautious optimism. However, confirming a stronger trend reversal relies on a break above $2,000, as repeated rejection could keep Ethereum confined within its current downtrend channel.
