Ethereum came under bearish pressure on July 24, but technical indicators continued to suggest possible upside if the cryptocurrency remains above a key support area. Traders and analysts are closely watching ETH’s behavior around $1,850, a level currently viewed as important for its short-term structure.

At the time of writing, ETH was trading at $1,891.58, down 1.13% over the previous 24 hours. The asset posted $19.26 billion in daily trading volume, while its market capitalization stood at $228.90 billion. Despite the modest decline, Ethereum remained above a technical support zone that analysts say could influence its next move. In technical analysis, support and resistance levels are used to track areas where buying or selling pressure has previously appeared, making them common reference points for short-term traders.

Ethereum Rebounds From Channel Support

Crypto analyst Ali Martinez issued an update on July 24 on his Ethereum technical analysis, shared via X at https://x.com/alicharts/status/2080545959696581100. The analysis indicated that Ethereum had recently rebounded after testing the lower boundary of its price channel.

According to Martinez, as long as Ethereum continues to trade above $1,850, the asset could attempt a rebound toward the upper boundary of the channel, with $2,060 becoming the next level in focus. A breakdown below that support, however, would weaken the technical setup.

The chart referenced in the analysis also showed Ethereum continuing to respect the boundaries of its trading channel. The coming sessions are therefore being watched to determine whether the current rebound can develop into a broader recovery.

Derivatives Data Shows Mixed Conditions

Ethereum’s derivatives market presented a mixed picture despite the latest price decline. Data from Coinglass showed open interest down 1.50% at $27.34 billion, indicating that some leveraged positions may have been closed during the recent market move. A decline in open interest often points to reduced speculative activity, particularly during short-term price weakness.

At the same time, derivatives trading volume increased 7.78% to $37.07 billion, showing that market participation remained elevated. When volume rises while open interest falls, it can indicate that existing positions are being unwound while new participants continue to enter the market. These derivatives metrics are closely monitored because leveraged markets can amplify short-term volatility when positions are opened or closed quickly.

Another closely watched metric, the OI-weighted funding rate, remained near 0.0005%. A funding rate close to zero suggests a broadly balanced market, with no meaningful premium favoring either long or short positions. In practical terms, buyers and sellers appeared evenly matched.

Market Focus Remains on $1,850 and $2,060

The next several trading sessions may be important for Ethereum’s near-term trend. Market participants are watching whether buyers can keep ETH above the $1,850 level while trading activity remains strong.

If that support area holds, Ethereum could continue moving gradually toward the $2,060 resistance level identified by Martinez. If sellers gain control and push the price below support, attention may shift to lower support levels.

For now, Ethereum’s technical structure remains intact, but confirmation from stronger price action and sustained buyer interest would be needed for a recovery attempt to gain traction. Traders are also likely to continue monitoring whether derivatives open interest stabilizes and whether funding remains balanced, as those indicators can help show whether the market is becoming more directional or staying cautious.