Ethereum fell back toward $1,880 after failing to clear the $2,000 level, as profit-taking, rising derivatives leverage and a sharp sell-off in U.S. technology stocks weighed on risk assets.

According to data from crypto.news, Ethereum (ETH) traded near $1,882 at press time, down about 3% over the previous 24 hours after reaching the $1,935–$1,950 area earlier in the week. Sellers appeared below the psychological $2,000 threshold and the 100-day exponential moving average, halting a rally that had started near $1,560 in late June.

The pullback left ETH testing a key support area around $1,850–$1,880. Holding that range could keep a recovery structure intact and support another move toward $1,950 and, if momentum improves, approximately $2,060.

Wall Street’s technology-sector decline added pressure during Thursday’s session. The Magnificent Seven stocks fell 4.8% and erased about $797 billion in market value, marking their worst day since the tariff-driven sell-off in April 2025. The S&P 500 dropped 1.2%, while the Nasdaq 100 lost 1.9%, according to CoinDesk.

Alphabet’s decision to raise its 2026 capital-spending forecast to as much as $205 billion, together with weaker-than-expected profits at Tesla, contributed to the equity-market decline. High-beta assets came under pressure as investors questioned whether returns from artificial-intelligence spending could justify the sector’s rising costs. For crypto traders, that equity weakness matters because Ether and other large tokens often trade as risk assets during macro-driven sessions, especially when leverage is elevated.

Ether suffered a larger decline than Bitcoin, which held near $65,400 with a drop of less than 1%. The divergence showed that investors remained more cautious toward altcoins as capital moved away from riskier trades.

ETF inflows remain positive as leverage rises

U.S. spot Ethereum exchange-traded funds recorded $26.3 million in net inflows on July 23, extending their positive streak to five consecutive sessions. BlackRock’s ETHA took in $8.5 million, Fidelity’s FETH attracted $14.9 million, and Grayscale’s mini Ether fund added $2.9 million, according to Farside Investors.

The latest total followed inflows of $38 million, $37.5 million and $72.7 million during the first three sessions of the week. Although ETF demand stayed positive, Thursday’s figure was sharply lower than the previous day and did not offset selling pressure in the spot market.

Institutional access also expanded in Switzerland after BancaStato integrated Sygnum’s digital-asset infrastructure. The cantonal bank’s clients can now trade Bitcoin, Ether, Solana and USD Coin through its existing web and mobile banking platforms, adding another regulated distribution channel for ETH.

Derivatives traders increased exposure as Ether moved toward resistance. Open interest rose by 600,000 ETH over two days to 14.6 million ETH, its highest level since June 7, according to CoinGlass data. Open interest measures outstanding futures and perpetual contracts, so increases can amplify volatility when prices approach widely watched support or resistance levels.

Funding rates, which had been positive through most of July, briefly turned negative on Thursday for the first time since June 29. The shift came as $41.55 million in leveraged positions were liquidated over 24 hours, including $34.4 million in long positions. Rising open interest combined with negative funding leaves both bullish and bearish positions vulnerable to forced closures.

U.S. spot demand has not yet matched the ETF recovery. CryptoQuant’s Coinbase Premium Index has remained negative for nearly three months, meaning Ether has continued to trade at a discount on Coinbase compared with offshore exchanges.

Ethereum needs to hold $1,850 to maintain its ascending channel

The 4-hour chart places ETH at the lower boundary of an ascending parallel channel that has guided its recovery since early July. Immediate support sits between $1,850 and $1,880, while the channel’s upper boundary could reach around $2,060 if buyers reclaim $1,950.

According to crypto analyst Ali Martinez, the latest reaction has kept the channel structure intact. “As long as this support at $1,850 continues to hold, I’m watching for a move back toward the upper boundary near $2,060.”

Short-term momentum remains weak. The 4-hour relative strength index has fallen to 44.06, below its moving average of 52.62. The MACD line at minus 1.48 is below its 5.42 signal line, while the negative histogram reading of 6.90 indicates that sellers still control the immediate move.

On the daily chart, ETH is trading near the Ichimoku conversion line at $1,879 and above the forward cloud’s $1,816 upper boundary. The Chaikin Money Flow remains positive at 0.07, showing that net capital has not fully left the market despite the pullback.

CoinGlass’s weekly liquidation heatmap places the nearest concentration of leveraged positions around $1,900–$1,910. A larger overhead cluster sits near $1,955–$1,965, where a price advance could trigger short liquidations and reopen a path toward $2,000.

Downside liquidity has built around $1,840–$1,850, followed by another concentration near $1,820. A 4-hour close below the channel boundary and $1,850 would invalidate the immediate recovery setup, exposing $1,816 and then $1,750–$1,730.

Persistent equity weakness, higher bond yields or renewed inflation pressure could deepen that breakdown. To make another credible attempt at $2,000, buyers first need to reclaim $1,910 and break through the $1,950–$1,965 supply zone.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.