Ethereum price is blocked at $2000, technology stocks rout tests the $1850 support level

Ethereum prices fell under pressure, with US$1,850 becoming the key support.

Ethereum prices fell back to around US$1,880 after failing to break through the US$2,000 mark. Profit-taking, rising derivatives leverage and a sharp sell-off in U.S. technology stocks combined to weaken market sentiment.

Market Overview

Ethereum prices fell to around $1,880 after failing to break through the key $2,000 resistance level. Despite weak market sentiment, the spot Ethereum ETF still recorded a net inflow of US$26.3 million. If we can hold on to the $1,850 support level, it could push the price back to $1,950 and eventually challenge $2,060.

As of press time, Ethereum was trading at approximately US$1,882, down approximately 3% in the past 24 hours. Prices hit the $1,935 to $1,950 area earlier this week, but encountered selling pressure below the psychological level of $2,000 and the 100-day index moving average, ending a rally that began near $1,560 at the end of June.

A sell-off in Wall Street technology stocks added to pressure during Thursday's trading session. Shares of the seven technology giants fell 4.8%, wiping about US$797 billion from their market value, setting their worst one-day performance since a tariff-driven sell-off in April 2025. The S & P 500 fell 1.2%, and the Nasdaq 100 fell 1.9%.

Alphabet raised its 2026 capital expenditure forecast to a maximum of US$205 billion and Tesla's profits fell short of expectations. Investors are beginning to question whether the return on artificial intelligence investment can support the industry's rising costs, putting pressure on high-beta assets.

Ethereum's decline was more significant than Bitcoin, which held steady at around $65,400, down less than 1%. The difference suggests that investors remain cautious about altcoins as funds move away from risky transactions.

ETF capital inflows and rising leverage support Ethereum's recovery

U.S. spot Ethereum exchange-traded funds recorded a net inflow of US$26.3 million on July 23, continuing the positive flow of funds for five consecutive trading days. Among them, BlackRock's ETHA fund received $8.5 million, Fidelity's FETH fund attracted $14.9 million, and Gray's mini Ethereum fund increased $2.9 million.

Prior to this, inflows in the first three trading days of the week were US$38 million, 37.5 million and 72.7 million respectively. Although ETF demand remained positive, Thursday's data fell sharply from the previous day and failed to offset selling pressure in the spot market.

Institutional access channels have also expanded in Switzerland, with BancaStato integrating Sygnum's digital asset infrastructure. Customers of the state bank can now trade Bitcoin, Ethereum, Solana and USD Coin through its existing online and mobile banking platforms, adding another regulated distribution channel to Ethereum.

Derivatives traders increased their exposure as Ethereum approached resistance. According to data, open interest volume increased by 600,000 Ethereum contracts in two days to 14.6 million, the highest level since June 7.

Funding rates were positive for most of July, but briefly turned negative on Thursday for the first time since June 29. The change came as $41.55 million in leveraged positions were liquidated within 24 hours, of which long positions accounted for $34.4 million. The rise in open interest contracts is accompanied by negative funding rates, exposing both long and short positions to the risk of forced liquidation.

U.S. spot demand has not kept pace with the recovery of ETFs. The Coinbase Premium Index has been negative for nearly three consecutive months, which means that Ethereum's trading price on Coinbase continues to be lower than that on offshore exchanges.

Ethereum needs to hold $1,850 to maintain the rising channel

From the 4-hour chart, Ethereum is on the lower track of the rising parallel channel that has guided its rebound since early July. Direct support is between $1,850 and $1,880, and if buyers regain $1,950, the upper track of the channel could hit about $2,060.

Market analysts pointed out that the latest price response has kept the channel structure effective. "As long as the $1,850 support continues to hold, I expect prices to move upward around $2,060. "

Short-term momentum remains weak. The 4-hour relative strength index has dropped to 44.06, below its moving average of 52.62; the MACD line is at minus 1.48, below the signal line of 5.42. A negative bar chart reading of 6.90 shows that sellers are still in control of the short-term trend.

Judging from the daily chart, Ethereum is trading near the Imoke Equilibrium Conversion Line of US$1,879 and above US$1,816 on the cloud track. The flow of funds indicator remained positive at 0.07, indicating that despite the correction, net capital has not completely left the market.

The weekly clearing heat chart shows that the most concentrated leveraged positions are around $1,900 to $1,910. A larger cluster of resistance lies in the $1,955 to $1,965 range, and if prices break through this area, it could trigger short liquidations and reopen the path to $2,000.

Downward liquidity accumulated around $1,840 to $1,850, followed by another concentration area around $1,820. A four-hour close below the bottom of the channel and $1,850 would negate the current rebound pattern and expose the price to the risk of $1,816 and then falling to $1,750 to $1,730.

Continued stock market weakness, rising bond yields or renewed inflationary pressures could exacerbate this decline. Bulls need to regain $1,910 and break through the $1,950 to $1,965 supply zone before Ethereum can try to hit $2,000 again.

The content of this article is for educational reference only and does not constitute investment advice.