Ethereum prices are close to $2000, and Nasdaq rebounds to reignite demand

Ethereum prices rose to US$1945 after technology stocks led a rally on Wall Street.

Ethereum prices climbed from US$1800 to an intraday high of US$1945. This round of rise stems from the technology-led rally on Wall Street that revitalized market risk appetite. However, resistance below $2000 still keeps traders cautious.

Market Summary

·The Nasdaq index led the rally to boost risk appetite, and the Ethereum price stabilized above $1900
·New ETF inflows and short liquidations may support prices to exceed $2000
·A drop below $1859 will weaken the rebound momentum and expose the support level of $1828

Data shows, Ethereum prices were trading around $1929 at the time of writing, up about 6% from their July 21 lows. Buyers initially followed U.S. stocks higher, with the Nasdaq index rising 1.3%, the S & P 500 index rising 0.9%, with semiconductor and artificial intelligence stocks leading the gains. Micron Technology rose 12.2%, and Nvidia rose 2%. Notably, enthusiasm surrounding upcoming tech company earnings reports drove the day's trading.

Institutional funding flows provide another source of demand. The U.S. spot Ethereum exchange-traded fund recorded a net inflow of $37.47 million in its most recent trading. BlackRock's ETHA products contributed $52.7 million, partially offset by outflows from Fidelity's FETH products.

Ethereum's momentum for Bitcoin has also improved. Cryptocurrency trader Daan Crypto Trades pointed out that Ethereum outperformed Bitcoin in the third quarter after falling 29.26% in the first quarter and another 25.28% in the second quarter. CoinGlass data shared by the trader showed Ethereum has risen 22.98% so far in the third quarter, compared with an average return of 8.86% in the third quarter since 2016.

According to Daan, the rebound comes after Ethereum's weakest first half since 2022, and although the third quarter has historically been slow, the recovery is not unusual. "In the end, Bitcoin will still lead the market,"Daan wrote.

Whether Bitcoin can hold on to its recent gains is therefore crucial to Ethereum's next move. Even if Ethereum continues to outperform Bitcoin in terms of relative performance, a new round of Bitcoin selling may draw away demand for altcoins.

Ethereum prices still retain a path to hit US$2000

The Ethereum daily chart has formed an upward channel since a low near US$1514 at the end of June. Prices are currently trading above the lower boundary of the channel and the 20-day simple moving average of $1828. The rising support line produced a series of higher lows, while the upper boundary left room for buyers to move towards $2080 after breaking through current resistance.

The 1945-1953 USD region constitutes the first resistance level. Ethereum has tested the area twice but failed to achieve a daily closing break, with the 4-hour Fibonacci structure showing its full recovery level at $1953. A breakthrough in that price would expose a 100-day moving average of $1981, followed by a psychological barrier of $2000.

The Ethereum Daily Relative Strength Index (RSI) reached 64.36, above its signal average of 59.67, but below the traditional overbought threshold of 70. The reading leaves room for further gains, but buyers no longer enjoy the conditions of deep discounts near June lows.

On the 4-hour chart, the RSI is 63.29, while the random RSI has dropped to 52.86, below its signal line of 60.72. This difference suggests that although very short-term momentum has weakened after being blocked around $1945, the main uptrend remains intact. Consolidating above uptrend line support will maintain a higher low structure.

Liquidation data shows that the largest adjacent leverage pool is between $1,950 and $1,960. CoinGlass's week-long heat chart shows that this range is the brightest concentration area above the market, with additional liquidity around $1980 and $2000. A breakthrough of $1953 could trigger short liquidations and accelerate the move towards the integer mark.

Below the market, leverage clusters are located around $1900,$1880 and $1840. The $1900 region has served as intraday support, while the 4-hour Fibonacci correction has identified $1859 as the next major level. Trader Ted Pillows put the key support range slightly above this, setting it at $1,870-$1,900. "If the $1,870 - 1,900 area holds, Ethereum may soon rebound above $2000. "

Falling below $1859 will weaken Ethereum's recovery

If prices close below the $1,870 - 1,900 demand area and fall below the 4-hour trend line, Ethereum's bullish pattern will lose strength. The next support level is at $1859, or a 78.6% Fibonacci pullback. If this level falls, it will expose a lower clearing area near the daily 20-day moving averages of $1828 and $1840.

A deeper decline below $1828 would break the higher series of lows and put $1785 back into view. The 4-hour chart identifies this level as a 61.8% Fibonacci pullback, while the daily 50-day and 50-week moving averages are at a lower level of $1734. If risk appetite deteriorates sharply, these levels will become relevant.

Macroeconomic conditions remain the main external threat. Brent crude reached US$91.01 on July 21, and the US-Iran conflict pushed up energy prices. Higher oil prices could reignite inflation concerns and push up Treasury yields, reducing demand for high-beta assets such as Ethereum.

Currently, Ethereum maintains a rising structure above $1900. If the daily closing price breaks above $1953, it will strengthen the reasons for hitting $2000; while a break below $1859 will invalidate the current breakthrough attempt and increase the risk of falling back to $1828.