Key Takeaways
Ethereum broke above $1,800 for the first time in weeks as softer-than-expected US inflation data triggered a wave of short covering across crypto derivatives markets.
Ethereum rose 5% to $1,806 as of 14:30 UTC, its highest level since early June, after the US Bureau of Labor Statistics reported the Consumer Price Index rose 3.5% year-over-year in June, 30 basis points below the consensus estimate of 3.8%. Core CPI, which excludes energy and food costs, fell 20 basis points from the prior reading, while monthly prices declined 0.4% against expectations of a 0.1% increase, according to the BLS.
"The lower core inflation print removes the urgency for the Fed to hike in September," said Jason Wu, on-chain analyst at Edgen. "Rate-sensitive assets are repricing as the market digests a higher probability that the tightening cycle has peaked."
The macro shift triggered $300 million in short liquidations across crypto derivatives in the past 24 hours, with Ethereum accounting for more than a third of that total, surpassing Bitcoin in liquidation volume during that window, according to Coinglass data. Open interest across ETH futures rose to $24.55 billion as traders placed fresh directional bets.
The move confirmed a double-bottom pattern on the daily chart, with Ethereum bouncing off $1,550 twice in June before breaking above the $1,800 neckline. The daily Relative Strength Index registered a bullish divergence during the decline, signaling that selling pressure was decelerating even as price fell. Trading volumes climbed 33% in the past 24 hours, CoinGecko data shows.
Why $2,400 Is the Next Target
The 200-day exponential moving average sits at $2,200 and represents the next major resistance level. A clean break above that threshold could push Ethereum toward $2,400, a level that coincides with a long-dated buy signal on the weekly chart triggered when the weekly RSI dropped below 30, according to Edgen's technical analysis.
On the 4-hour timeframe, Ethereum broke out of an inverse head-and-shoulders pattern, with the $1,750 level now acting as support. As long as price holds above that mark, the structure favors a continued move higher.
Whale Accumulation Adds a Demand Backdrop
Bitmine Immersion Technologies, the treasury firm chaired by Tom Lee, now holds 5.77 million ETH worth roughly $10.5 billion at current prices, making it the largest Ethereum treasury holder globally. About 85% of that stash, or 4.92 million ETH, is staked and earning rewards. The firm is 264,962 ETH short of its goal to own 5% of Ethereum's total supply, according to its latest disclosure.
The long-to-short ratio across ETH derivatives stands at 0.9771 over 24 hours, while on Binance the ratio for accounts leans long at 1.8868, suggesting retail traders are positioning for further upside. Total liquidations reached $51.55 million in the past day, with longs losing $31.47 million and shorts losing $20.08 million, per Coinglass.
The next test for bulls comes at $1,820 to $1,850, a zone that has capped rallies for weeks. A daily close above that range would confirm the breakout and set up a run toward $2,000, then $2,200 and $2,400. A failure to hold above $1,750 could send Ethereum back toward $1,650 support.
This article is for informational purposes only and does not constitute investment advice.
