Ethereum's price has surged past $1,850, prompting traders to set sights on the $2,000 mark following a recent dip in U.S. inflation rates.
The second-largest cryptocurrency gained nearly 5% on July 15 after June's Consumer Price Index (CPI) figures came in lower than expected. This data alleviated fears regarding potential aggressive rate hikes from the Federal Reserve, leading to a broader rally in risk assets across global markets, including tech stocks.
Technical analysis indicates that maintaining support above $1,850 is crucial for sustaining this bullish momentum. A significant short squeeze occurred as leveraged positions between $1,800 and $1,850 were liquidated, contributing to the upward momentum. The latest liquidity heatmap suggests fresh buying interest concentrated between $1,900 and $1,950, which could trigger further liquidations and potentially lead to a breakout towards the psychological $2,000 level.
Analysts highlight that Ethereum's price recovery has developed from a series of rounded-bottom formations following a selloff below $1,500 in June. This breakout at $1,850 has established a new resistance level, with projections indicating a target near $2,190, an area previously marked as a strong resistance zone earlier this year.
Momentum indicators favor continued buying, with the Aroon Up indicator above 92 and the Relative Strength Index around 63, signaling room for further gains before reaching overbought conditions. The 4-hour chart shows the cryptocurrency maintaining its bullish structure, having reclaimed the 100% Fibonacci retracement level near $1,897.
Market analysts, including Daan Crypto Trades, note the return to a bullish market structure following the breakout, emphasizing the importance of the $1,850 support for future price movements.
This material is for informational purposes only and should not be considered financial advice.
