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▲ Ethereum (ETH)
Ethereum (Ethereum, ETH) has recovered the $1,700 mark, once again raising expectations of breaking through $2,000 next week.
According to crypto media outlet Coingape on July 3 (local time), Ethereum rose 6% to reach $1,713 amid a recovery in the cryptocurrency market. As Bitcoin (Bitcoin, BTC) moved above $62,000, investor sentiment for major altcoins also revived. Solana (Solana, SOL), XRP (XRP), Cardano (Cardano, ADA), and Dogecoin (Dogecoin, DOGE) also rose simultaneously, contributing to the short-term recovery of risk appetite.
The first driving force behind the rise is the overall market recovery. The total cryptocurrency market capitalization increased by 2.71% over 24 hours, reaching $2.14 trillion. Ethereum rose approximately 10% on a weekly basis, and Solana climbed 18%. As the price reversal trend continued, approximately $281 million worth of short positions were liquidated across the market.
The second variable is the easing of tensions in the Middle East. Coingape reported that the negotiating atmosphere between the US and Iran, falling oil prices, and the shipping situation in the Strait of Hormuz influenced the improvement in risk asset investor sentiment. Oil prices fell to a four-month low, and the easing of energy price burdens could act as a factor in reducing global inflationary pressures. The market's assessment that the risk of war has decreased led to a recovery in cryptocurrency buying momentum.
The third reason is the inflow of funds into Ethereum spot ETFs. Ethereum spot ETFs experienced a net outflow of approximately $529 million in June, but the trend shifted in July. On July 1st, $14.9 million flowed in, and on July 2nd, $29.08 million flowed in, resulting in a total net inflow of $43.98 million over two days. Bitcoin spot ETFs also switched to a net inflow of $222 million on July 2nd, after 10 consecutive trading days of net outflows.
In the technical analysis, $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 remained in positive territory, indicating sustained upward pressure. The Relative Strength Index (RSI) entered the overbought zone around 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 breached, the possibility of retesting $1,600 increases, and if selling pressure intensifies, it could drop to the $1,560 demand zone. Conversely, if the support at $1,700, ETF fund inflows, and market recovery continue, Ethereum will first confirm $1,800 and then test further upward momentum towards $2,000.
[Article Key Summary]
-Ethereum rose 6% to $1,713, raising expectations of retesting $2,000.
-The total cryptocurrency market capitalization increased by 2.71% over 24 hours, reaching $2.14 trillion, and approximately $281 million worth of short positions were liquidated.
-Ethereum spot ETFs recorded a total net inflow of $43.98 million from July 1st to 2nd, breaking away from the net outflow trend in June.
*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.*
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