Ethereum has surged past the $1,700 mark as decreasing geopolitical tensions and renewed interest from large investors spark optimism that the second-largest cryptocurrency may emerge from its prolonged bearish phase.
Summary
- Ethereum increased nearly 4% to exceed $1,720, bolstered by easing geopolitical tensions and new whale investments that uplifted market morale.
- A breakout from a symmetrical triangle formation and favorable momentum indicators have shifted attention to the $1,850-$1,900 resistance range.
- Despite the recent rally, ongoing ETF outflows and weakened Ethereum economics pose significant risks.
As reported by crypto.news, Ethereum (ETH) saw a near 4% rise on June 15, trading over $1,720 after a drop in oil prices, attributed to the reopening of the Strait of Hormuz, alleviated immediate inflation worries impacting volatile assets. This rebound follows weeks of consistent downward pressure that pulled ETH from above $2,000 earlier this month to a low around $1,510.
The upswing in Ethereum’s price coincided with Bitcoin’s approximately 3% increase and a recovery in tech stocks, aiding Ethereum in rebounding from a prior week’s downturn and reclaiming a crucial psychological barrier.
Moreover, Ethereum has gained from renewed whale activity. Lookonchain data indicates that a whale wallet acquired an additional 5,818 ETH valued at roughly $10 million, continuing a trend of recent buying activity.
However, not everyone in the market shares this newfound positivity. Recent figures from SosoValue indicate that spot Ethereum ETFs have experienced five consecutive weeks of net outflows, with nearly $900 million exiting these funds during that timeframe. The ongoing withdrawals suggest that numerous institutional investors remain hesitant despite the latest uptick.
Additional insights from market analysts indicate that selling pressure may be diminishing. Whale Factor notes, “the market is running out of active sellers,” while indicating that outflows from Bitcoin and Ethereum investment vehicles have significantly decreased compared to the previous week.
Ethereum Surpasses Short-Term Resistance
On the four-hour chart, Ethereum has successfully broken out of a symmetrical triangle that formed following the June 6 dip toward $1,510. This breakout has elevated the price above the triangle’s upper trendline and back into the $1,700 territory, with the Supertrend indicator turning bullish, showing support near $1,658.
Additionally, momentum indicators show positive shifts. On the daily chart, the RSI has climbed from a deeply oversold state and is moving toward 37, while the MACD histogram has shifted positive for the first time in multiple sessions. ETH has also reclaimed the 0.786 Fibonacci retracement level around $1,707, calculated from the decline that occurred between $2,426 and $1,511.
Despite this short-term breakout, the daily chart indicates that Ethereum is still within a broader bearish flag pattern established after the decline in early June. The price is currently testing the upper limit of this pattern around the $1,750-$1,800 area, which could influence whether the current recovery leads to a more significant trend reversal.
A significant breakthrough above this level may negate the bearish formation and pave the way toward the $1,850-$1,900 range, while failure to do so would keep the flag pattern intact and heighten the risk of another downturn.
Commenting on Ethereum’s current situation, crypto analyst Ted Pillows stated that the cryptocurrency has managed to break its short-term downtrend.
“$ETH has breached its short-term downtrend. Should Ethereum surpass the $1,700 mark, it may work its way toward the $1,850-$1,900 range.”
The next notable technical barrier lies around $1,860, aligning with the 0.618 Fibonacci retracement level. Successfully navigating through this area could bring the significant $1,900 mark back into play and perhaps challenge the descending trendline that has constrained price increases since May.
The derivatives market also indicates that traders are returning to bullish positions. Funding rates have returned to positive levels after being below neutrality for much of the recent downturn, suggesting that leveraged traders are, once again, willing to pay to maintain long positions.
Liquidation Clusters Present Both Upside Opportunities and Downside Threats
Data from CoinGlass reveals a high concentration of short liquidations between $1,740 and $1,760, with another significant cluster approaching $1,790. A move into these zones may necessitate further short covering, possibly accelerating upward price movement.
Below current levels, the largest liquidity concentration lies near $1,650. The heatmap indicates a significant number of leveraged positions at this level, establishing it as a crucial support area for buyers.
A failure to maintain this zone could lead Ethereum toward another sweep down to the whale liquidation zone around $1,420.
Additionally, fundamental concerns persist. Ethereum continues to grapple with declining token burn dynamics, with Layer-2 networks capturing transaction activity while generating fewer fees for the main chain.
Simultaneously, ETF outflows and a shift in capital towards artificial intelligence stocks have restrained demand for major altcoins throughout 2026.
While Ethereum has achieved a technical breakout and drawn fresh interest from whales, a complete recovery likely hinges on bulls defending the $1,650-$1,700 range and overcoming the heavy resistance cluster spanning $1,850 to $1,900.
Disclosure: The information in this article does not constitute investment advice. The content provided on this page is intended for educational purposes only.