Ethereum’s price recently rebounded sharply after forming a double-bottom near a crucial support level around $1,565, signaling renewed buying interest. The cryptocurrency surged above $1,700, battling critical resistance near $1,800, with $2,000 noted as the next major hurdle if buying momentum continues. This recovery coincides with a rare bullish trigger from Ethereum's monthly TD Sequential indicator, marking the first such signal since March 2025.
The monthly TD Sequential has previously flagged strong rallies, preceding gains above 200% in past cycles, which fuels cautious optimism this time. However, experts emphasize that while the signal suggests a possible macro turning point, it does not guarantee a sustained bull market due to varying market contexts compared with prior cycles.
Speculative traders have responded to this signal by increasing leveraged exposure. Open interest in Ethereum derivatives climbed notably, surging more than 13% within a day, while funding rates more than doubled, reflecting the premium long traders pay to maintain positions. This rise in leverage demonstrates growing bullish sentiment but also heightens potential liquidation risk if prices fail to hold recent gains.
Technical momentum is further supported by the Relative Strength Index (RSI), which moved above the neutral midline after emerging from oversold territory. This suggests improving buying strength, yet the price remains shy of its key resistance zones. Analysts point out that a sustained break above $1,800 would be necessary to confirm that this recovery is part of a larger trend reversal rather than a short-lived bounce.
Liquidity analysis reveals clusters of leveraged positions stacked around $1,740 to $1,750, placing substantial pressure just above current prices. Since markets often target these liquidity zones due to the trading activity generated by forced liquidations, Ethereum could see some near-term upward movement until it confronts the stronger resistance near $1,800. Conversely, a liquidity zone below around $1,680 to $1,650 means downside volatility remains a risk should buyers lose control.