Ethereum is showing fresh signs of recovery after reclaiming the $1,700 level, with improving technical indicators and renewed institutional demand giving bulls reason for optimism.
The world’s second-largest cryptocurrency climbed more than 6% over the past 24 hours, trading around $1,715 on July 3, according to crypto.news price data. The rebound comes after weeks of selling pressure and has shifted traders’ attention toward the next major resistance level at $1,800.
While several technical indicators suggest momentum is improving, mixed on-chain data indicates the recovery is still in its early stages.
Ethereum rebounds as ETF inflows return
One of the biggest catalysts behind Ethereum’s latest rally has been the return of institutional investment.
According to SoSoValue, U.S. spot Ethereum ETFs recorded $29.08 million in net inflows on July 2 after recent periods of weaker demand.
BlackRock’s ETHA led the recovery with approximately $29.74 million in inflows, while Grayscale’s ETHE posted net outflows of around $2.75 million.
The renewed ETF demand helped Ethereum maintain its breakout above the psychologically important $1,700 level after spending several weeks under pressure.
If buyers can maintain control, analysts believe $1,800 will become the next major resistance area.
However, losing the $1,700 level could shift attention back toward support at $1,650, followed by the stronger demand zone near $1,500.
Technical indicators point to improving momentum
Ethereum’s short-term technical picture has strengthened considerably over the past few sessions.
The MACD has produced a bullish crossover, with the histogram turning positive around 19.33. Although both MACD lines remain below the zero line, the crossover suggests bearish momentum is fading and buyers are gradually regaining control.
At the same time, the Relative Strength Index (RSI) has climbed above the neutral 50 level, reaching approximately 51.85 after spending much of June in weaker territory.
An RSI above 50 generally signals improving buying momentum, although it does not yet confirm a sustained bullish trend.
Rare TD Sequential buy signal catches analysts’ attention
Crypto analyst Ali Charts highlighted another technical development that has attracted significant market attention.
According to the analyst, Ethereum has generated a monthly TD Sequential buy signal, a relatively rare indicator that often appears after prolonged selling pressure.
The signal suggests sellers may be exhausting themselves on higher timeframes, potentially creating conditions for a longer-term recovery.
Ali Charts also identified $1,100 as a major long-term support level within Ethereum’s multi-year price channel.
If that support continues to hold, the analyst believes Ethereum could eventually recover toward the channel’s midpoint near $3,000, while the upper boundary sits around $5,000.
These targets reflect a long-term technical outlook rather than short-term price expectations.
ETH/BTC chart also turns more bullish
Ethereum is also beginning to strengthen relative to Bitcoin.
Crypto analyst Crypto Rover noted that the ETH/BTC trading pair is approaching a golden cross, where the 50-week moving average rises above the 100-week moving average.
Historically, this pattern has often preceded periods in which Ethereum outperformed Bitcoin.
If the crossover is confirmed, it could indicate that investor capital is beginning to rotate back into Ethereum after months of Bitcoin dominance.
Derivatives activity signals higher volatility
Market participation has also increased sharply.
According to CoinGlass, Ethereum derivatives trading volume rose 14.48% to $44.74 billion, while open interest climbed 10.64% to $24.54 billion.
Meanwhile:
- Options trading volume increased 30.19% to $1.41 billion
- Options open interest rose 6.67% to $4.43 billion
Higher open interest often supports stronger price movements because more capital is entering the futures market.
However, it also increases the risk of large liquidations if leverage builds too quickly.
For now, derivatives data suggests traders should expect increased volatility rather than a smooth upward trend.
On-chain signals remain mixed
Blockchain data paints a less straightforward picture.
CryptoQuant analyst Darkfost reported that Binance recorded more than 166,000 Ethereum withdrawal transactions in a single day, the highest level in approximately three years.
Large exchange withdrawals are often viewed as a bullish sign because investors typically move assets into self-custody or decentralized finance platforms when planning to hold rather than sell.
Some withdrawals may also have been linked to confusion surrounding Europe’s MiCA regulations, which took effect on July 1.
However, another CryptoQuant analyst, PelinayPA, noted that Binance’s Ethereum netflow remained positive at approximately 12,938 ETH.
Positive exchange netflows indicate that more ETH entered exchanges than left them, potentially increasing available supply and creating additional selling pressure.
Together, these indicators suggest accumulation is occurring, but selling risks have not completely disappeared.
Institutional support continues to grow
Ethereum’s longer-term outlook continues receiving support from institutional adoption.
Recent industry initiatives have expanded Ethereum’s role within traditional finance.
The newly launched Ethereum Institutional initiative—supported by BitMine, SharpLink, Joe Lubin, and several other industry participants—aims to accelerate Ethereum adoption among banks, custodians, asset managers, and financial institutions.
Corporate treasury demand has also remained strong.
BitMine recently increased its Ethereum holdings by 27,084 ETH, bringing its treasury to more than 5.7 million ETH, representing approximately 4.7% of Ethereum’s circulating supply.
Meanwhile, SharpLink continued accumulating during the recent correction, purchasing another 10,000 ETH worth approximately $16.1 million.
These institutional purchases suggest that large investors continue viewing Ethereum as a long-term strategic asset despite ongoing market volatility.
Outlook
Ethereum has regained important technical momentum after reclaiming the $1,700 level, supported by renewed ETF inflows, improving momentum indicators, and growing institutional accumulation.
The appearance of a rare TD Sequential buy signal adds another layer of optimism, suggesting the recent downtrend may be losing strength.
However, mixed on-chain activity and rising derivatives leverage indicate that volatility is likely to remain elevated.
If buyers successfully defend the $1,700 level, Ethereum could make another attempt to break $1,800. A successful breakout would strengthen the case for a broader recovery, while failure to hold current support could send the price back toward $1,650 or even $1,500.
