The price of Ethereum (ETH) surged past a significant descending trendline, a barrier that has held since its all-time high. Currently trading at around $1,928, ETH has gained 5.2% in the last 24 hours, signaling a potential rally ahead.

On July 14, Ethereum futures open interest across exchanges hit $19.8 billion, a notable increase since early June when a market-wide deleveraging event reset many positions. This rising open interest indicates that new capital is entering the market, rather than just shorts covering their losses.

According to Glassnode, the open interest metric previously fell to about $15.5 billion in late June, but its swift recovery shows traders are returning to ETH derivatives with renewed confidence. In a striking move, whale trader Machi Big Brother opened a long position worth $24.3 million at 25x use, setting a liquidation point at $1,833.

Interestingly, recent liquidation data points to a bullish outlook, with long liquidations at just 4%, the lowest in a year. This suggests that the majority of liquidations were from short traders, indicating that as ETH's price increases, short traders are being forced out of their positions. However, while these squeeze-driven rallies can create significant upward momentum, they also require sustained spot demand to maintain their momentum.

Current Support Levels and Market Trends

The weekly chart highlights the importance of the current price level. An ascending trendline drawn from the June 2022 bottom has consistently been respected, with a bounce occurring near $1,600. Additionally, this trendline coincides with a long-term green demand zone that has provided support four times since early 2023. This area also aligns with the 0.786 Fibonacci retracement level of the entire cycle at $1,754, marking it as a critical structural support.

As Ethereum continues to navigate these market dynamics, traders are closely watching for further price movements and potential resistance levels. The next significant hurdle sits well above, at the 0.618 Fibonacci retracement level, where the market will test the strength of this recent upward momentum.

This material is for informational purposes only and should not be considered financial advice.