ETH broke below the channel on July 23 and has now remained outside it for five consecutive daily sessions. Recent rebounds have tested the former lower boundary from below, but buyers have been unable to move price back inside the structure.
The latest rejection also came from the $1,950 area, just beneath the 100-day simple moving average near $1,950. That leaves Ethereum back near the 0.382 Fibonacci support around $1,870.
The channel breakdown is already confirmed. Its former lower boundary has shifted from support into resistance, adding another obstacle above the current price.
Holding $1,870 could support another attempt at $1,950. A move through that level would give buyers a chance to recover the broken channel and retest $1,950, followed by the 100-day SMA and the 0.5 Fibonacci retracement near $1,980.
A daily close below $1,870 would expose the 0.236 retracement near $1,730.
Coinglass recorded $98.8 million in Ethereum liquidations over 24 hours. Long positions accounted for $76.9 million, compared with $21.9 million in short liquidations.
The imbalance shows that the rejection forced heavily positioned bullish traders out of the market. Removing that leverage can reduce immediate liquidation pressure, but price still needs fresh demand before a recovery can develop.
Ethereum’s OI-weighted funding rate also moved below zero after remaining positive through much of July. Because the metric gives more weight to markets with larger open positions, the shift suggests that leveraged positioning has tilted slightly towards shorts.
That reduces the earlier concentration of long bets and could strengthen a rebound if shorts are forced to close. Negative funding alone, however, does not show that buyers have returned.
Ethereum futures recorded a three-day net inflow of $284 million after a seven-day net outflow of $676 million.
The return of futures capital shows that traders are rebuilding exposure after the previous week’s reduction. More leverage could amplify the next move, particularly while ETH remains below its former channel.
Spot flows offer less support. Coinglass recorded a 12-hour net outflow of $30.7 million, although the one-, four- and eight-hour readings had moved into positive territory.
Some buyers have responded near the current price, but the shorter inflows have not yet offset the broader 12-hour withdrawal. That helps explain why ETH has stabilized near $1,880 without recovering the resistance above it.
On a broader timeframe, Ash Crypto posted on X that Ethereum has moved above a descending trendline that had capped price for roughly 11 months. That break improves the longer-term picture and could support sentiment across the altcoin market.
It does not confirm a full reversal. ETH remains below its 100-day and 200-day moving averages, with the latter near $2,130, and still trades beneath the larger downtrend extending from its multi-year high.
The immediate test is whether Ethereum can recover $1,950 and reclaim the broken July channel from below. Failure to do so would keep the breakdown active, while a close beneath $1,870 would shift attention towards $1,730.
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