Ethereum price tests the $2000 mark, and the next target of bulls is $2,500

Ethereum prices rose 5% to $1966 on July 27, as surging spot demand, short clearing and tightening available supply pushed ETH closer to the key resistance level of $2000.

Summary

Ethereum prices rose 5% to US$1966, and 24-hour spot trading volume surged 118.53% to US$9.21 billion.

The daily chart shows that $1,981.50 and $2000 are the next major resistance areas.

The 4-hour RSI reached 73.36, showing strong momentum, but the risk of a short-term correction has increased.

Liquidation data shows that there is a large amount of leverage concentration around US$1980 to US$2000, and liquidity below is concentrated around US$1930.

Analysts believe that if ETH stabilizes above $2000,$2350 to $2500 is a possible target.

Ethereum prices rebound points to US$2000

Ethereum prices climbed to approximately US$1966 from around US$1870 in the previous trading day, continuing a rebound that started from a June low of approximately US$1512. The latest trend puts ETH only about 2% short of the psychological threshold of US$2000.

According to market data, spot trading volume increased by 118.53% in 24 hours to reach US$9.21 billion. Both volumes and prices suggest buyers are supporting gains rather than fluctuations that occur when trading is light.

The daily chart showed that ETH hit an intraday high of US$1,981.24, and then fell slightly back to US$1964. This high is very close to the 100% Fibonacci retracement level of $1,981.50, making the $1981 - 2000 range the first key test of a rebound.

Ethereum has regained its position at the 78.6% Fibonacci retracement level of $1,880.97. Below this level, the next retracement levels are $1,802.05,$1,746.62 and $1,691.19.

The daily supertrend indicator has also turned bullish, with support at around US$1,772.31. ETH needs to fall below this level to pose a serious risk of failure to the broader rebound structure.

Spot demand and supply pressures support ETH

Ethereum's rebound was accompanied by a sharp increase in market activity and a record increase in its pledge rate of 34%. Pledged tokens cannot immediately enter the spot market, reducing the available liquid supply during periods of strengthening demand.

Higher Layer 2 throughput and decentralized financial activity have also increased smart contract execution. According to proposal EIP-1559, the basic fee portion of each transaction will be destroyed, reducing ETH circulation when network usage increases.

These supply conditions do not guarantee further increases, but may amplify price fluctuations as demand accelerates. A smaller pool of liquid ETH means that buyers may need to make large spot purchases at gradually higher prices.

U.S. spot Ethereum exchange-traded funds provide another source of demand. Market background shows that these products have recovered and recorded more sustained net inflows after experiencing volatile outflows in early July.

For U.S. investors, continued capital inflows will prove that while the native cryptocurrency market is active, regulated demand is also increasing. However, the upcoming Fed interest rate decision remains a key risk, as hawkish policy signals could reduce demand for risky assets such as ETH.

Technical indicators warn of short-term overheating

The Ethereum 4-hour chart shows prices are moving in an upward parallel channel that has guided a rebound since early July. ETH recently rebounded from around $1850 below the channel and returned to the $1965 region.

Among the Aron indicators, Aron's upward position is 92.86%, while Aron's downward position is only 14.29%. This huge gap suggests that recent highs have occurred much more frequently than recent lows, supporting the short-term bullish structure.

However, kinetic energy is becoming excessive. The 4-hour relative strength index reached 73.36, higher than the traditional overbought threshold of 70 and well above its average of 55.41. This reading does not require an immediate reversal, but increases the possibility of consolidation or profit-taking around $2000.

The daily MACD indicator remains constructive. The MACD line is at 46.51, which is higher than the signal line at 40.75, while the positive histogram reading is 5.76. These values suggest that although ETH is close to resistance, upward momentum is still active.

A daily close above $1,981.50 will break through the full Fibonacci rally shown on the chart. Bulls then need to reconfirm $2000 as support to target the $2050 to $2100 range near the upper track of the four-hour channel.

Ethereum clearing or accelerating breakthrough

The three-day liquidation heat chart shows that there is concentrated leverage directly above the current price. The strongest aggregation areas occur around $1980 to $2000, with additional liquidity extending to $2040.

Prices entering these areas may force leveraged short positions to be closed through market purchases. This process could trigger another short squeeze and help ETH break through resistance, especially if spot volume remains high.

The heat map also shows downward liquidity around $1945 to $1930, followed by a larger concentration around $1900 to $1880. If blocked from $2000, prices may fall back towards these areas as leveraged long positions are closed.

The largest lower gathering area occurs around $1835 to $1850. This area coincides with the lower track of the 4-hour channel and will provide an important defensive range for bulls if ETH falls below $1880. A break below the zone would expose $1802, followed by $1772 near the daily supertrend indicator.

Analysts set an ETH target of US$2350 to US$2500

Market commentator Michaël van de Poppe said that Ethereum may consolidate first before starting the next round of gains. "It's just a matter of time before it goes up to $2500 (on the other side of the range)."

Analyst Ted Pillows also pointed to rising spot demand, but set short-term conditions at $2000. "If Ethereum can break through and regain its footing at $2000, it could rebound to its May high."

Pillows 'chart places median resistance around $2191 and a larger supply area in the $2350 to $2400 range. These targets are based on the premise that ETH closes above $2000 and holds that level during backtesting.

If it fails to regain its footing at US$2000, it will be conducive to short-term consolidation, and the target will look at US$1930 or US$1881. The bullish structure remains intact above the lower track of the rising channel, while a decisive break below $1850 will weaken current expectations for a rebound.