Ethereum's rebound is showing signs of fatigue after the ETH price failed to break through the $2,000 resistance level, a psychologically significant threshold that has repeatedly capped upward moves in previous cycles. The asset climbed from roughly $1,520 in early July to nearly $1,980 last week, marking its highest price point in several months. However, the rally has since decelerated as a bearish signal from the TD Sequential indicator draws traders' attention. Notably, the same tool had flashed a buy signal near the July lows before Ethereum's recovery began. It has now shifted to a sell signal as ETH trades below key short-term moving averages.

TD Sequential Turns Bearish After ETH Rally

Market analyst Ali Martinez noted that the TD Sequential has closely tracked Ethereum's recent price reversals. The indicator, developed by Thomas DeMark and widely adopted by crypto traders for timing potential exhaustion points in trending markets, displayed a buy setup when ETH fell to around $1,520, after which Ethereum gained sharply and moved toward the $2,000 resistance zone.

Martinez said the indicator has now produced a sell signal, suggesting that the recent upward move may be running out of momentum. Ethereum has failed to hold above $1,900, keeping buyers under sustained pressure.

ETH Price Holds Near Immediate Support

On the four-hour chart, ETH was trading near $1,883 after falling below both its 20-period and 50-period exponential moving averages. The 20-period EMA stood near $1,904.89, while the 50-period EMA was close to $1,900.10.

Ethereum remained slightly above the 100-period EMA at $1,878.53, a level that is now functioning as immediate support. A break below it could open the path toward the 200-period EMA near $1,844.60.

The MACD reflected weakening momentum. The MACD line remained below the signal line, and the histogram pushed further into negative territory. For the short-term structure to improve, buyers would need to reclaim the $1,900 to $1,905 range.

Analysts Warn of Another Rejection

Crypto Lens observed that Ethereum has been range-bound between $1,860 and $1,955 as selling pressure caps the recovery. The analyst expects ETH to test $2,000 before another decline takes hold, with a projected downside range of $1,400 to $900.

ETHEREUM stuck at $1860-$1955 range for a reason.
The real $ETH Bull Trap is just getting started.
ETH will first rally into the $1,900–$2,000 resistance zone.
Then the real capitulation begins.
My roadmap:

1. Rally to 1,900–2,000 2. 7–10 days of distribution 3. Final bottom… pic.twitter.com/4hreCqO5YO
   — Crypto Lens (@crypto_lens_) July 28, 2026

Crypto Rover focused on the ETH/BTC trading pair, noting that Ethereum has formed a pattern of lower highs and lower lows against Bitcoin over the past year. The pair did recover from approximately 0.025 in June to 0.03, but it remains below previous peaks. Rover anticipates another rejection that could drive the pair below 0.0235, which would place Ethereum at a fresh multi-year low against Bitcoin and signal continued relative weakness versus the market leader. The ETH/BTC decline has been an ongoing narrative throughout 2025, reflecting investor preference for Bitcoin amid spot ETF inflows and broader risk-off positioning in digital assets.

I'm sorry, bulls. $ETH vs $BTC keeps forming lower highs, and the latest rally is already losing momentum.
The same thing happened last time before ETH/BTC fell to a new low. pic.twitter.com/Si09I1gfIN
— Crypto Rover (@cryptorover) July 30, 2026

Open Interest Falls as Liquidations Rise

Ethereum open interest declined from roughly $13.47 billion to approximately $13.31 billion over the past day. The drop indicated that traders were reducing leveraged positions as ETH moved toward $1,880. Open interest recovered slightly afterward, though overall activity remained cautious. Declining open interest during a price pullback often reflects deleveraging, which can precede either a reset for further upside or accelerated downside depending on subsequent spot market direction.

Liquidation data revealed losses on both sides of the market. Long liquidations reached about $3.8 million during the price decline, while short liquidations also rose during brief rebounds, with one cluster approaching $4 million.

The data underscores that Ethereum remains in a fragile trading range. Support near $1,878 and resistance above $1,900 are currently defining the next potential move. A break from either level could determine ETH's price direction in the coming sessions.