Counterattack after a 65% plunge…Will Ethereum surpass $2,000 again?

▲ Ethereum (ETH)/ChatGPT generated image ©

Ethereum (ETH) is continuing its short-term rebound, recovering to the late-$1,700s, buoyed by Bitcoin's rally. While breaking above the 20-day Exponential Moving Average (EMA) again on the 20th signaled technical improvement, an analysis suggests that whether it breaks the 50-day EMA and $2,000 will be a critical watershed determining the July trend.

According to TradingNews, an investment media outlet, on July 7 (local time), Ethereum traded at $1,774.17 as of New York time, rising approximately 1.6% during the day. The price recovered the 20-day EMA of $1,708, improving its short-term technical trend, but it is still about 65% lower than its all-time high of approximately $5,000 recorded in August 2025. Its market capitalization is approximately $233 billion, maintaining its position as the second-largest cryptocurrency after Bitcoin.

The outlet cited Bitcoin's recovery as the biggest factor behind this rebound. As Bitcoin recovered to $64,000, overall investor sentiment in the cryptocurrency market improved, and Ethereum also moved away from its low in the $1,500s and surpassed the 20-day EMA again. However, the 50-day EMA of $1,865 was identified as the next key resistance level, and breaking it could open up possibilities for further gains to the psychological resistance level of $2,000. Decentralized prediction markets reportedly reflect an approximately 35% probability of Ethereum surpassing $2,000 in July.

Lower support levels were also clearly presented. The closest support level is the 20-day EMA at $1,708, followed by the $1,600 and $1,500-$1,512 range as key defense lines. The outlet analyzed that if $1,500 breaks, further declines to $1,450 and even $1,400 could be possible. Conversely, if $1,708 is maintained, the short-term upward structure is likely to be preserved.

In addition to technical factors, network development was mentioned as a long-term positive. Vitalik Buterin proposed the 'Extremely Lean Ethereum' concept, which significantly reduces network state data using Zero-Knowledge Proofs (ZKP), and the Glamsterdam upgrade, scheduled for the first half of 2026, focuses on improving Layer 1 scalability and efficiency. Furthermore, corporate accumulation, such as BitMine Immersion holding approximately 4.8% of the total Ethereum supply, was also evaluated as a factor contributing to supply reduction.

The outlet diagnosed that Ethereum has entered a phase where it is testing whether it can break $1,865 in the short term. While the short-term trend improved with the recovery of the 20-day EMA, it analyzed that sustained bullish momentum from Bitcoin and a breakthrough of the 50-day EMA are needed for future gains. Conversely, it added that if it falls below $1,708 again, the possibility of retesting the $1,500 support level could increase.

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