Rare monthly buy signal flashes for Ethereum—but the bullish case isn’t clear-cut
Ethereum (ETH) has seen recent price gains of 8.05% in the past week and 4.9% in the past day. However, the overall sentiment remains bearish, evidenced by significant outflows of $358.3 million from its spot ETFs since mid-June 2026 and the loss of key support levels at $3.2k and $2.0k.
Despite the downtrend, market data shows a potential short-term squeeze. The taker buy-sell ratio and Open Interest have risen, indicating aggressive buyer orders and renewed speculative interest in perpetual swap markets. This activity could fuel a short squeeze, though a slowdown in Open Interest would suggest the bounce is merely due to short covering, not sustained demand.
A critical long-term support level is the -1.0σ MVRV band at $1,549. Meanwhile, a rare monthly TD Sequential buy signal has flashed for July—similar signals in the past preceded major rallies of 235% and 182%. However, the persistent negative ETF flows and weak market sentiment cast doubt on whether a major bottom is forming. The bullish case is not clear-cut, and time will tell if further decline is ahead.
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