Ethereum top traders boost long exposure by 3 points as ETH nears $2,000

Ethereum rose 5.2% to $1,928 as top traders boosted long exposure by more than three percentage points, CoinGlass data shows.

"The increase in long positioning across both stablecoin- and coin-margined markets is unusually broad for a single session," a CoinGlass analyst tracking the data as of 00:15 UTC on July 16 said.

The shift follows a 6.5% rally on Monday that broke Ethereum above a descending trendline in place since the all-time high. Futures open interest across all exchanges climbed to $19.8 billion, the highest since June 3, according to Glassnode. Long liquidations dominance fell to 4%, its lowest in a year, meaning 96% of liquidated positions were short traders forced out as the price pushed higher.

The next test sits at $1,900 to $2,000. A confirmed daily close above that zone on rising volume could open the path toward $2,438, nearly 30% above current levels. On the downside, $1,754 is critical support — a triple confluence of a long-term trendline, horizontal support and the 0.786 Fibonacci retracement.

CPI data sparked the initial move

The rally began after softer-than-expected US inflation data on July 14. June CPI came in at negative 0.4% month-over-month, with the year-over-year figure dropping to 3.5% from 4.2%. Binance recorded approximately $1.2 billion in ETH taker buy volume within the first hour after the release, capturing roughly 97% of the flow across major platforms, according to CryptoQuant data cited by analyst Darkfost.

Rate hike expectations for the July 29 Federal Open Market Committee meeting collapsed from 46.5% before the CPI print to near zero afterward, futures market data shows.

Whale trader Machi Big Brother opened a $24.3 million ETH long at 25x leverage, with liquidation set at $1,833, on-chain data from Arkham Intelligence shows.

One warning sign remains. Volume has been declining during the recovery, meaning the breakout lacks confirmation from broad participation. Analysts watching the ETH/BTC ratio see early signs of a broader Ethereum comeback that could fill the missing demand.

If Ethereum loses $1,754, the next support sits at the ascending trendline near $1,600, drawn from the June 2022 bottom. A weekly close below that level would invalidate the bullish structure entirely.

This article is for informational purposes only and does not constitute investment advice.