Ethereum price broke through US$2000 without success, backtesting the US$1850 support level

TLDR: Ethereum prices face dual pressure from leverage and losses from technology stocks

Ethereum prices must hold at $1850 to protect against a rebound trend

Ethereum prices fell back to around $1880 after sellers blocked their attempts to break through the psychological resistance level of $2000. The $1850 support area currently protects Ethereum's upward channel and could determine whether the near-term rebound can last.

The spot Ethereum ETF recorded a daily net inflow of US$26.3 million, extending the trading day of consecutive positive inflows to five trading days. The rise in open interest and negative funding rates increase liquidation risk as traders establish leveraged positions near key price levels.

Ethereum prices fell to around $1880 on July 24, after failing to break through the psychological resistance level of $2000. The decline erased some of the gains that had begun near $1560 at the end of June. As of press time, Ethereum was trading at approximately $1882, down approximately 3% in 24 hours. Sellers showed up after Ethereum hit the $1935 to $1950 range earlier this week.

A broader sell-off in technology stocks has also eroded risk appetite. Major U.S. technology companies lost nearly $797 billion in market value during Thursday's trading session. Bitcoin fell less than 1%, trading at close to $65400. The larger decline in Ethereum suggests investors are continuing to reduce their exposure to risky altcoins.

Ethereum prices face dual pressure from leverage and losses from technology stocks

Ethereum prices weakened as Wall Street investors questioned growing spending on artificial intelligence. Alphabet has raised its 2026 capital expenditure forecast to as much as $205 billion. Tesla's weak earnings report also added to the pressure on technology stocks. The Nasdaq 100 fell 1.9%, while the S & P 500 fell 1.2%.

Cryptocurrency derivatives data shows that traders increased exposure before prices were blocked. Ethereum open interest increased by 600,000 ETH in two days. Total open interest reached 14.6 million ETH, the highest level since June 7. The increase in leverage exacerbates the risk of forced liquidation when prices fluctuate sharply.

Funding rates briefly turned negative on Thursday for the first time since June 29. About $41.55 million in leveraged positions faced liquidation within 24 hours. Long traders accounted for approximately $34.4 million of the total. The data showed that long positions suffered most of the losses during the bearish correction.

The spot Ethereum ETF still recorded a net inflow of US$26.3 million on July 23. This result extended its positive inflow momentum to five consecutive trading days. Fidelity's FETH received $14.9 million, while BlackRock's ETHA attracted $8.5 million. Gray's small Ethereum fund added another $2.9 million. Total daily inflows were lower than previous weekly levels of $38 million,$37.5 million and $72.7 million. As a result, ETF demand failed to offset selling pressure in the spot market.

Ethereum price must hold at US$1850 to protect against rebound

Technical analysis from Ethereum shows that ETH is currently located near the lower boundary of an ascending channel. The structure has been guiding the rebound since early July. Ethereum has rebounded after testing the lower boundary of the channel. As long as the $1850 support level remains in effect, prices are expected to move back to around $2060 near the upper boundary.

Direct support for ETH is between $1850 and $1880. Holding the area may allow buyers to target the $1910 first and then challenge the $1950 supply area. Cryptocurrency analyst Ali Martinez said that as long as Ethereum holds $1850, the channel will still be valid. In another rally, the upper boundary could reach about $2060.

The momentum indicator is still favorable to sellers in the short term. The four-hour relative strength index fell to 44.06, below its moving average of 52.62. The MACD line also fell below its signal line. Its negative bar chart shows that bearish momentum has continued during the most recent trading session. Ethereum prices are still above the leading cloud band boundary of approximately $1816 on the daily chart. The Chaikin Money Flow indicator remained positive at 0.07, indicating that funds have not completely left the market.

Liquidation data shows that there are large leveraged positions around $1900 and $1910. Another large liquidity cluster is located between $1955 and $1965. Breaking through these levels could trigger short liquidations and reopen the path to $2000. Buyers must first recover $1910 with stronger spot volume.

Downward momentum liquidity has formed between $1840 and $1850, and then another cluster emerged around $1820. A four-hour close below $1850 could expose the price to $1816. Further selling could push ETH into the $1750 to $1730 region. Continued stock market weakness or rising bond yields could add pressure around these lower levels.