Ethereum (ETH) surged over 5% in a single day, breaking through the significant $1,800 resistance level following U.S. inflation figures for June, which revealed a year-over-year increase of 3.5%, falling short of analyst expectations.
The Consumer Price Index (CPI) demonstrated a month-over-month decline of 0.4%, contrasting the anticipated 0.1% drop. This unexpected dip in inflation has raised the likelihood of the Federal Reserve maintaining interest rates, shifting market sentiment towards riskier assets.
Data from CoinGlass indicates that approximately $300 million in short positions were liquidated within 24 hours, with ETH accounting for more than a third of these liquidations. This suggests that many traders were betting against ETH at this critical price point.
Analyst Ted Pillows highlighted that Ethereum had previously maintained support just above $1,750, signaling buyer interest at that level. As the $1,800 mark was surpassed, it became evident that the bullish momentum was gaining strength.
Trading volume for ETH also rose by 33%, adding to the bullish sentiment. Analysts note that high trading volumes accompanying price surges typically indicate a more solid market signal.
Future resistance levels are suggested to be around $2,200, with analysts eyeing $2,400 as a broader target. The SuperTrend indicator has recently turned bullish on Ethereum’s three-day chart, further supporting the upward trend.
This material is informational and not financial advice.
