Ethereum ( ETH ) has rebounded strongly back to the 2600 USD level, looking up at the 2800 USD resistance level.

As the crypto market overall turns bullish, the short positions in major mainstream assets are being systematically liquidated. Ethereum ( ETH ) is no exception. On July 2nd, it saw a big pump of 6.78% in a single day, pushing the ETH price back to the $2600 mark, during which nearly $90 million in short orders were liquidated.

Gate market shows that ETH is currently at 2,603.18 USD, with a 24-hour rise of 6.24%.

The core issue is: Can ETH turn the reclaimed $2600 into a stepping stone for sustained rise? The rebound in market risk appetite makes the next move of Ethereum crucial.

Why is the ETH Get Liquidated event noteworthy? An in-depth analysis of market structure

The daily structure of Ethereum reveals a clear turning point:

• Open Interest at Historical Highs (OI): On June 12, OI reached a record $41.75 billion, while ETH stood above $2800 for the first time since February.

• Warning Signal of Whale Exodus: Although spot demand remains stable, the number of whale wallets holding over 10,000 ETH has plummeted to just 884, the lowest level since 2016.

• Leverage-induced crash: Whale withdrawals triggered short positions to get liquidated aggressively, with over $20 billion in OI closed out in less than three weeks, leading to a typical bull trap.

• ETH's decline far exceeds BTC: In the next two weeks, Bitcoin ( BTC ) corrected by 10.8%, while ETH's price plummeted by 24.6% to a low of $2113.

  

However, the subsequent rebound marks a key shift in price action:

• Strong rebound the next day: After the plunge, ETH rebounded by 8.28% the next day.
• Consolidation Holds Hidden Secrets: Subsequently, ETH narrowly fluctuated within the range of 2400 to 2500 USD for a full ten trading days. This kind of horizontal trend after a large-scale liquidation usually suggests that the main force is covertly accumulating positions.

If this judgment holds, then ETH cleanly and decisively recapturing the key level of 2600 USD may represent a strategic turning point, laying the foundation for a sustained breakthrough supported by real positions.

Does ETH Have the Conditions to Break Through? Key Indicators and On-Chain Dynamics

As Ethereum breaks through the key supply pressure zone, its market structure enters a sensitive area:

• The Long-Short Battle Heats Up: As of the time of writing, the long-short ratio on mainstream CEX contracts is stuck at 50:50. This balance is hard to maintain, and if the short positions sense fatigue or holding pressure, short orders may quickly gain the upper hand.
• Whale Rebalancing Attracts Attention: On July 2 alone, Ethereum whales moved over $3 billion in ETH liquidity: 45,155 ETH flowed out of CEX, while 60,000 ETH was transferred from the Arbitrum chain to another CEX.
• Institutional Accumulation Signals: BlackRock has been quietly increasing its holdings, adding ETH-related exposure on 29 out of the last 30 trading days.

The fundamentals are warming up: on-chain data is strong.

• On-chain activity surges: Ethereum's daily transaction count skyrocketed to 1.45 million, matching the peak of the bull market in 2021.
• DeFi Lending Recovery: This quarter, DeFi lending activity increased by 43%, indicating that crypto capital is being redeployed.

In summary: Ethereum's breakthrough of 2600 USD is the result of structural driving forces. If this price level can be maintained, it will create conditions for the next round of short positions squeeze, with the ETH price target expected to look towards the 2800 USD resistance level. The ETH spot ETF expectations may also become a potential catalyst. Closely monitoring the ETH order book depth and whale address movements will be key to assessing the sustainability of the breakout.