Ethereum (ETH) Completes Double Bottom at $1,500... A Major Reversal Rally if it Breaks 'Here'

▲ Ethereum (ETH)/AI Generated Image

Ethereum (ETH) has confirmed buying pressure twice near the $1,500 support level, increasing the possibility of a short-term rebound. However, with the long-term downtrend channel and major moving average resistances still holding above, this rebound is analyzed to be closer to a relief rally than a trend reversal.

According to crypto media outlet Cryptopotato on July 2 (local time), Ethereum has remained within a long-term downtrend channel that has persisted for several months. The 100-day and 200-day moving averages are situated in the $2,000 to $2,200 range, both maintaining a downward slope. The outlet diagnosed that the macroeconomic trend remains bearish as Ethereum's price is below these moving averages.

However, strong demand was confirmed in the $1,500 support area after a sharp decline. Ethereum tested this price level twice, and this movement increased the possibility of forming a potential double bottom. Although the pattern is not yet confirmed, the repeated defense of the same support level indicates a slowdown in selling pressure.

The Relative Strength Index (RSI) is also recovering from near oversold territory and slowly rising towards the midline. This indicates improving short-term momentum without signs of overheating. For an upward scenario to gain traction, Ethereum must reclaim the $1,800 resistance level to confirm the double bottom structure. If this area is breached, the next major supply zone will be $2,000-$2,200, where the 100-day and 200-day moving averages converge.

On the 4-hour chart, the short-term trend is clearer. Ethereum accumulated liquidity below the $1,500 low, after which buying pressure re-entered, preventing further declines. The current price is approaching a key fair value gap at approximately $1,700, an area where selling pressure may emerge due to recent bearish shocks. A clear breakthrough of this zone opens the possibility of heading towards the $1,850 resistance level.

Expectations for mid-to-long-term upside were also confirmed in the derivatives market. Looking at the distribution of open interest in option contracts, the largest volume is concentrated in the December 2026 expiry, with call option open interest significantly outweighing put options. Call option dominance was also observed in the major expiries at the end of September and July 2026. The media analyzed that while a bullish reversal cannot be concluded solely from option positions, a combination of double bottom confirmation and resistance breakthrough could strengthen market sentiment.

Ultimately, Ethereum's short-term turning point hinges on defending $1,500 and reclaiming $1,800. If the $1,500 support level breaks, the potential reversal structure will be compromised, leading to deeper declines. Conversely, if it surpasses the $1,700 fair value gap and the $1,800 resistance, the likelihood of a relief rally towards the $2,000 to $2,200 range increases.

[Key Article Summary]

-Ethereum confirmed buying pressure twice at the $1,500 support level, increasing the possibility of forming a double bottom.

-The recovery of the $1,800 resistance level was presented as a key criterion for determining the reliability of a short-term rebound.

-In the options market, call option dominance centered around the December 2026 expiry was observed, indicating remaining expectations for mid-to-long-term upside.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*