Malcolm
07/06 11:58
Ethereum price holds above $1,750 after 12% rally as bulls battle key resistance
Summary
Ethereum has gained about 12% since July 1 after weak U.S. jobs data boosted expectations for Fed rate cuts.
Spot Ethereum ETFs ended an eight-week outflow streak as BlackRock’s ETHA helped drive $29.1 million in net inflows.
Bulls are defending $1,750 support, while a breakout above $1,800 could trigger another wave of short liquidations.
Ethereum’s rally gathered pace after the U.S. Bureau of Labor Statistics reported that June nonfarm payrolls rose by just 57,000, far below expectations of roughly 115,000. The disappointing labor data sharply reduced expectations of further Federal Reserve tightening, lifting risk assets across global markets. Treasury yields also eased following the release, giving cryptocurrencies another tailwind as investors rotated back into higher-beta assets.
Ethereum’s own fundamentals strengthened alongside the macro backdrop. On July 1, Ethereum Institutional launched with backing from ecosystem leaders including co-founder Joe Lubin to accelerate institutional adoption of the network.
A day later, U.S. spot Ethereum ETFs reversed an eight-week streak of net outflows, attracting $29.1 million in fresh capital led by BlackRock’s ETHA. The return of positive ETF flows removed a persistent source of selling pressure that had weighed on ETH throughout the second quarter.
Network developments also contributed to investor confidence. On July 4, Vitalik Buterin unveiled an updated “Lean Ethereum” roadmap after meetings with Ethereum researchers in Berlin. The multi-year proposal outlines upgrades designed to simplify the protocol, improve scalability, reduce storage requirements, and introduce quantum-resistant security, giving investors a fresh long-term catalyst just as sentiment began improving.
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Ethereum faces decisive resistance after recovering from historic selloff
Ethereum (ETH) entered the rebound from deeply oversold conditions after closing its first-ever stretch of three consecutive losing quarters. The correction dragged ETH from above $3,400 to nearly $1,563 by July 1 while active network addresses fell roughly 46%, leaving market positioning heavily skewed toward bearish bets before buyers regained control.
The daily chart shows ETH reclaiming the 0.786 Fibonacci retracement near $1,704 after bouncing from the $1,500 region. Price is also pressing against the daily Supertrend resistance around $1,807 while remaining beneath a descending trendline that has capped every rally since May.
Ethereum daily price chart — July 6 | Source: crypto.news
A successful breakout above both barriers would expose the 61.8% Fibonacci level near $1,858, followed by the psychological $2,000 region and the 38.2% retracement around $2,074.
Shorter-term charts show momentum beginning to cool after the initial breakout. Ethereum has traded inside an ascending channel on the 4-hour timeframe, although price has recently slipped toward the lower boundary. The MACD has produced a bearish crossover while the histogram has turned negative, suggesting buying momentum has weakened after the sharp advance. Even so, the RSI remains above 60, leaving room for another push higher if buyers defend support.
Ethereum 4-hour price chart — July 6 | Source: crypto.news
Commenting on the latest setup, analyst Daan Crypto Trades noted in a July 6 X post:
“Holding above $1,750 support for the time being, which is good to note given how choppy this has been. If bulls can get a daily close over $1,800, that’d be the first sign of strength for me on this timeframe.”
Derivatives positioning also shows traders concentrating around nearby price levels. The latest liquidation heatmap identifies one of the largest short liquidation clusters just above $1,800, meaning a decisive breakout could force leveraged bears to cover positions and accelerate the move toward $1,850. Meanwhile, sizeable long liquidation liquidity remains concentrated near the $1,720-$1,730 area, making that region an important support if selling pressure returns.
Ethereum liquidation heatmap | Source: CoinGlass
Loss of $1,750 support could stall the recovery
Risk remains elevated despite the recent rebound. According to analyst Ali Martinez, Ethereum has printed a new hourly Tom DeMark Sequential buy signal, but the bullish setup depends on price holding above $1,750. Martinez noted that a rebound toward $1,800 remains possible while that level holds, although losing it would invalidate the signal.
Ethereum $ETH just flashed a new hourly Tom DeMark Sequential buy signal.Hold $1,750, and a rebound toward $1,800 could follow. Lose it, and the bullish setup is invalidated. pic.twitter.com/mzmWOQsbY3— Ali Charts (@alicharts) July 6, 2026
A break below $1,750 would also push Ethereum beneath the lower boundary of its four-hour rising channel and place the $1,704 Fibonacci level back under pressure. Failure there could expose the recent swing lows near $1,560, particularly if incoming U.S. inflation or Federal Reserve commentary revives expectations for tighter monetary policy and reduces demand for risk assets.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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