Ethereum price approaches $1800, short squeeze and rising risk appetite accelerates

Ethereum prices rebounded to nearly $1800 after easing geopolitical tensions and a massive short squeeze in the cryptocurrency derivatives market, and appetite for risky assets recovered. Traders are currently focusing on whether bulls can break through key technical resistance levels.

Summary

Ethereum prices climbed again to around $1800, triggering a fierce short squeeze due to the easing of geopolitical tensions.

Technical indicators are positive for bulls, as ETH recovers the US$1750 mark and tests the US$1800 to US$1833 resistance zone.

Analysts believe it is expected to move towards $1900, but failure to hold $1750 may trigger renewed short pressure.

The second-largest cryptocurrency rebounded sharply from this week\'s low of about $1505-after a U.S. strike on Iranian targets triggered a full-scale sell-off of digital assets. As fears of a further escalation of the situation subsided in the past 24 hours, market sentiment reversed and investors shifted money back into risky assets.

A wave of forced short liquidations accelerated the rally, pushing ETH to break through multiple resistance levels and return to the psychological level of around $1800.

The Asian market also provides additional catalysts. South Korea\'s Kospi index surged about 4% driven by gains in artificial intelligence and semiconductor stocks, encouraging a wider range of funds to return to growth assets.

Ethereum participated in this funding round, although the U.S. spot Ethereum ETF recorded a net outflow of approximately US$52 million on Thursday, indicating that overseas spot demand and native cryptocurrency buying offset weakness in U.S. institutional funding.

New regulatory developments have also boosted market sentiment. The U.S. Commodity Futures Trading Commission leadership is urging the Senate to advance the Digital Asset Markets Clarity Act, which would establish a clearer regulatory framework for digital assets.

At the same time, Ethereum continues to dominate the tokenized real-world asset market, with nearly half of the world\'s RWA value locked into its network, further consolidating the chain\'s status as institutional tokenization activities expand.

Ethereum has regained key resistance, but $1800 remains the decisive obstacle

The daily chart shows that Ethereum has regained $1750 near 2/8 of Murray\'s mathematical pivot point after bouncing back from a 0/8 support level of around $1500. Prices are currently testing the upper edge of the range of around $1800, while Chaikin Money Flow has rebounded to a positive area of 0.08, indicating that capital is beginning to flow back after weeks of selling.

On the 4-hour chart, ETH has broken through the 78.6% Fibonacci retracement level at around US$1773 and is trading below resistance around US$1833. MACD completed the golden cross, and the positive histogram expanded, indicating increased momentum; the RSI rose above 62 and has not yet entered the overbought area. Together, these indicators suggest that there is still room for further gains if buyers remain in control.

Derivatives position data supports technical aspects. CoinGlass clearing data shows that one of the largest short clearing clusters is between $1790 and $1810. Continued breakthroughs in this area may trigger a new round of forced buying, with the next batch of leveraged positions concentrated around $1850. As long as these liquidity areas remain above, volatility is likely to remain high.

Talking about the latest trend, analyst Ted Pillows said: \"ETH holds on to the $1750 level, which is a good sign. Spot demand is picking up, which could push Ethereum into the $1850 to $1900 range in the coming weeks.\"

Another analyst, Alex Marzell, believes that Ethereum has rebounded from the downward trajectory of the long-term downtrend channel and believes that \"once it breaks through the upward trend line cleanly, everything may change.\" He wrote: \"Ethereum is quietly brewing big things. It has just rebounded strongly from the bottom of this huge downward channel. The structure is still short, but a clean break through the upper trend line may change everything. Breakthrough = trend shift.\"

If it fails to hold US$1750, the rebound pattern will weaken

Although momentum has improved, Ethereum has not yet confirmed a trend reversal. The $1800 - 1833 region is both Fibonacci resistance and an area of dense liquidity, so it is the primary test facing bulls. If it is repeatedly suppressed by this region, it may fall to US$1725 again; a break below US$1750 will expose the starting point of the current rebound-the US$1620 to US$1550 support area.

Macro risks still exist. A renewed escalation in the Middle East, stronger-than-expected U.S. inflation data, or renewed outflows from ETFs could weaken demand for risky assets and disrupt Ethereum\'s rebound. Until buyers establish support above $1800, the current rally remains a rebound rather than a confirmed long-term trend reversal.