Ethereum (ETH) climbed past $2,700 on Tuesday, recovering from recent losses sparked by legislative setbacks in the US and a Federal Reserve rate hike that weighed on risk assets. The latest rally began when buyers stepped in near a key on-chain price level, suggesting renewed interest in the world’s second-largest cryptocurrency by market capitalization.
Buyers move in near realized price support
Last week, Ethereum’s price slipped below $2,400 following the failure of the Clarity Act to progress in the US Senate. The additional uncertainty from a Fed rate increase pressured crypto markets further, pushing ETH closer to its realized price, currently near $2,310. Although ETH did not fall as low as this threshold, its proximity appeared to attract buyer interest.
The realized price reflects the average cost basis of on-chain holders, offering analysts insight into collective investor sentiment and key support zones where holders may defend their positions.
Mini dictionary: Realized price, the average price at which all coins currently held were last moved on-chain, is used to estimate the market’s aggregated cost basis and to identify major support or resistance levels.
After the drop, ETH quickly rebounded above $2,700. Analysts noted that this swift recovery indicates traders viewed the pullback as a buying opportunity despite broader market concerns. However, sustaining this momentum will likely depend on ETH holding above its realized price and attracting continued demand at higher levels, as some investors may look to take profits after the bounce.
ETF inflows strengthen, exchange deposits rise
US spot Ether exchange-traded funds (ETFs) added $143.8 million in net inflows on Friday and $147 million on Monday, breaking a run of outflows and reflecting renewed demand for regulated ETH investment products. This inflow highlights investment appetite despite recent volatility.
By contrast, data from blockchain analytics firm CryptoQuant pointed to increased deposits of ETH onto centralized exchanges in recent days, exceeding withdrawals. Investors often transfer assets to exchanges when they intend to trade or sell, suggesting possible selling pressure in the near term.
Perpetual futures trading also presented mixed signals. Over the weekend, Ethereum’s Taker Buy Sell Ratio—a measure of aggressive buying versus selling—rose as buyers became more active. This metric’s seven-day moving average turned positive, but by Monday sellers had regained control, hinting at waning confidence after the price surge.
Spot Ether ETFs saw a combined $290.8 million in inflows across Friday and Monday, reflecting a renewed appetite for ETH exposure through regulated channels even as prices recovered from their recent decline.
Liquidations, technical structure, and key resistance
The recent rally triggered major liquidations in derivatives markets. CoinGlass data showed that $181.02 million in ETH futures positions were liquidated in the past 24 hours, of which $143.20 million belonged to short trades. Short liquidations often accelerate upward moves as forced buybacks amplify price momentum, but they offer limited indication regarding sustainability once this temporary pressure subsides.
On the technical front, Ethereum maintains a bullish chart pattern, trading above the 20-, 50-, 100-, and 200-day exponential moving averages (EMAs). The 20-day EMA, situated near $2,537, provides immediate support. The current Relative Strength Index (RSI) stands at 67, suggesting the market has not reached overbought territory but could be close to a short-term peak.
Traders are watching $2,786 as the next significant resistance. A break above this threshold could bring $2,894 into play, with $3,177 identified as a higher target if bullish momentum continues.
| Resistance level | Support level | EMA (Exponential Moving Average) |
|---|---|---|
| $2,786 | $2,626 | 20-day ($2,537) |
| $2,894 | $2,544 | 50-day ($2,356) |
| $3,177 | $2,431 | 100/200-day (near $2,172) |
On the downside, initial support levels are found at $2,626, $2,544, and the 20-day EMA. If selling intensifies, the 50-day EMA at $2,356 and a previous support zone around $2,172 could come into play.
Futures data signaled reduced confidence after the rebound, while rising exchange inflows may point to increasing selling pressure as ETH approaches local resistance.
