Ethereum (ETH) Flashes Rare Monthly Indicator That Sparked 200%+ Rallies Before

TLDR

• Ethereum has surged more than 5% over the last 24 hours, successfully retaking the $1,650 threshold
• Over $92 million worth of short positions in ETH were liquidated, driving the price recovery
• Institutional sentiment appears weak with spot ETF outflows totaling -$358.3 million since mid-June
• A historically significant TD Sequential monthly buy indicator has emerged—previously preceding gains of 235% and 182%
• Crypto analyst Ted Pillows warns ETH needs to break above $1,700–$1,750 or risk declining toward yearly lows

Ethereum has staged an impressive recovery, climbing more than 5% during the past 24 hours and reclaiming territory above the $1,650 mark following extended downward pressure. The world’s second-largest digital asset has now posted an 8.05% gain across the past seven days, despite trading significantly beneath the $2,000 threshold it surrendered earlier this year.

The upward movement received significant assistance from a cascade of forced position closures. Approximately $92 million in bearish ETH positions were eliminated as prices accelerated upward, creating a short squeeze dynamic. Throughout the wider digital asset ecosystem, total liquidations exceeded $475 million within the identical 24-hour period.

Ethereum’s derivatives activity also experienced notable growth. Futures trading volume for ETH increased by nearly 29% to reach $43.4 billion, while open interest pushed above $22.8 billion. Options trading volume surged almost 57% to $915 million. The combination of rising open interest alongside price appreciation indicates new money flowing into the market rather than merely short position exits.

Funding rates have maintained positive territory, indicating that optimistic traders are willing to pay premiums for maintaining long exposure. This reflects short-term bullish sentiment among active participants.

Monthly Buy Signal Raises Eyebrows

Cryptocurrency analyst Ali Martinez highlighted on X that July commenced with a buy signal appearing on the monthly chart from the TD Sequential technical indicator. This identical signal materialized in September 2022 and March 2025. Following those previous occurrences, ETH delivered rallies of 235% and 182% respectively. Martinez’s observation has garnered considerable attention given how ETH’s current rebound from the $1,549 level aligns with the -1.0σ band on Ethereum’s MVRV extreme deviation pricing framework.

However, spot Ethereum flows present a contrasting narrative. Since June 17, Ethereum spot ETFs have experienced cumulative net outflows totaling $358.3 million, suggesting limited confidence among institutional participants.

Key Price Levels to Watch

Analyst Ted Pillows noted on X that while ETH has moved back above $1,600, it must successfully reclaim the $1,700–$1,750 range to validate any genuine upward momentum. Failure to do so leaves ETH vulnerable to sliding back toward its yearly lows.

Technically, the next significant resistance barrier stands at $1,700, with a secondary zone at $1,800–$1,850 where the 50-day moving average currently resides. On the downside, a breach below $1,600 could trigger a retest of the $1,550 support level.

Large holder activity has also attracted market attention. Notable crypto investor Machi Big Brother reportedly expanded ETH holdings after reducing exposure to various NFT assets, fueling speculation that sophisticated players view current valuations as attractive entry opportunities.

ETH is currently changing hands near $1,650 as of July 2, 2026, with the $1,700 level representing the immediate challenge for bullish traders.

The post Ethereum (ETH) Flashes Rare Monthly Indicator That Sparked 200%+ Rallies Before appeared first on Blockonomi.