On Monday, ether ($ETH) approached the $2,000 mark following a 4.5% surge amid increased inflows into exchange-traded funds (ETFs) and staking activity. According to Bitstamp data, $ETH reached a high of $1,980, more than $100 above its level 24 hours earlier, becoming one of the day's top gainers.
This surge essentially recouped losses $ETH had suffered since July 22, when it fell below the $1,900 level. The increase also boosted its market capitalization to $237 billion, resulting in a nearly 6% gain over seven days. Although the digital asset's year-to-date losses remain in the double digits, the momentum on July 27 created conditions for a return to the $2,000 level for the first time since June 2.
Meanwhile, the jump in $ETH proved especially brutal for "bears," as evidenced by $113 million in liquidated short positions over 24 hours compared to $10 million in long positions. According to Coinglass data, liquidated short positions for $ETH alone accounted for one-third of all liquidated short positions during this period.
Although $ETH's rise occurred alongside gains in the rest of the cryptocurrency market, analysts singled out the consistent inflows into spot $ETH ETFs over recent days as a key factor. Data shows that from July 20 to 24, ETFs attracted nearly $104 million, indicating strong institutional support for this digital asset.
Overall market sentiment was also bolstered by Circle receiving final approval from the U.S. Office of the Comptroller of the Currency (OCC) to form a national trust bank. Since USDC—Circle's flagship dollar-pegged token—operates primarily on Ethereum as its main settlement layer, the issuer's transition to federal oversight creates significant structural incentives for the network's development. Analysts note that the OCC approval lowers regulatory barriers for institutional players, ensuring long-term liquidity and accelerating enterprise adoption of technology in Ethereum's decentralized finance (DeFi) ecosystem.
Adding further momentum to the rise is the reported emptying of the Ethereum validator withdrawal queue, marking a critical turning point for the health of the network's proof-of-stake (PoS) mechanism. As blockchain data shows that there is not a single validator queued for $ETH withdrawal, withdrawal bottlenecks have virtually disappeared. The absence of delays allows capital to flow seamlessly and instantly into and out of staking protocols, reassuring investors that market liquidity remains absolutely stable.
Despite the recent bullish momentum, some technical analysts urge caution, viewing the current price movement as a temporary relief rally within a broader downtrend. According to technical analysis published by BitcoinpulseX, $ETH is forming a series of bear flags that indicate the current bounce may ultimately fail.
The forecast suggests one final capitulation move into the $1,300 to $1,450 range, where prolonged accumulation is expected to occur before a true trend reversal sets in. If this bottom holds, technical targets project a recovery to the $2,450 mark, with a macroeconomic target set at $3,950.
