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▲ Ethereum (ETH)
Ethereum (ETH) has recovered the $1,700 mark, once again raising expectations of breaking through $2,000 next week.
According to cryptocurrency media outlet Coingape on July 3 (local time), Ethereum rose 6% to $1,713 amid a recovery in the cryptocurrency market. As Bitcoin (BTC) moved above $62,000, investor sentiment for major altcoins also revived. Solana (SOL), XRP, Cardano (ADA), and Dogecoin (DOGE) also rose together, contributing to a short-term recovery in risk appetite.
The first driving force for the rise is the overall market recovery. The total market capitalization of the cryptocurrency market increased by 2.71% in 24 hours, reaching $2.14 trillion. Ethereum rose approximately 10% on a weekly basis, and Solana climbed 18%. As the price reversal continued, short positions worth approximately $281 million were liquidated across the market.
The second variable is the easing of tensions in the Middle East. Coingape reported that the atmosphere of negotiations between the United States and Iran, falling oil prices, and the shipping situation in the Strait of Hormuz influenced the improvement of investor sentiment for risk assets. Oil prices dropped to a four-month low, and the easing of energy price burdens could act as a factor in lowering global inflationary pressures. The market's assessment that the risk of war has decreased led to a recovery in cryptocurrency buying.
The third reason is the inflow of funds into Ethereum spot ETFs. Ethereum spot ETFs experienced net outflows of approximately $529 million in June, but the trend changed in July. On July 1, $14.9 million flowed in, and on July 2, $29.08 million flowed in, totaling a net inflow of $43.98 million over two days. Bitcoin spot ETFs also switched to a net inflow of $222 million on July 2, after 10 consecutive trading days of net outflows.
In technical terms, $1,700 was presented as a short-term turning point. Ethereum broke through $1,700 based on short-term buying momentum, and the next target mentioned was $1,800. The Moving Average Convergence Divergence (MACD) showed the blue line above the signal line, and the histogram also remained positive, indicating that upward pressure is alive. The Relative Strength Index (RSI) entered the overbought zone near 71, but the media interpreted it as a sign of strong momentum.
The first line of defense in a bearish scenario is $1,700. If this level is given up, the possibility of retesting $1,600 increases, and if selling pressure intensifies, it could drop to the $1,560 demand zone. Conversely, if $1,700 holds, and ETF fund inflows and market recovery continue, Ethereum will first confirm $1,800 and then test for further upward momentum towards $2,000.
[Article Key Summary]
-Ethereum rose 6% to $1,713, raising expectations of re-challenging $2,000.
-The cryptocurrency market capitalization increased by 2.71% in 24 hours, reaching $2.14 trillion, and short positions worth approximately $281 million were liquidated.
-Ethereum spot ETFs recorded a total net inflow of $43.98 million from July 1 to 2, breaking away from the net outflow trend in June.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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