Ethereum price surged nearly 5% on July 15, breaking above the $1,850 resistance after softer-than-expected U.S. inflation data triggered a broad crypto rally. The move has put the $2,000 level back into focus for traders, with technical charts and liquidation clusters pointing to further upside.
CPI relief sparks short squeeze
June's Consumer Price Index came in below expectations, easing fears that the Federal Reserve would resume aggressive rate hikes. Risk assets rallied across global markets, with Ethereum climbing alongside tech stocks as investors priced in a more accommodative policy outlook. Derivatives markets amplified the move: CoinGlass data shows a dense cluster of leveraged short positions between $1,800 and $1,850 was wiped out, forcing buybacks that accelerated the rally toward $1,900. The latest liquidation heatmap now shows fresh liquidity pockets concentrated around $1,900-$1,950, and a successful push through that zone could expose another wave of liquidations, opening a path toward the psychological $2,000 level.
Technical breakout puts $2,000 back in play
Ethereum's daily chart shows the recovery developed from a series of rounded-bottom formations after June's selloff to nearly $1,500. Price has now broken above the neckline near $1,850, a level that capped several recovery attempts. The measured move from the pattern projects a target close to $2,190, matching a major resistance zone from earlier this year. Momentum indicators favor buyers: the Aroon Up indicator stands above 92 while Aroon Down has dropped to zero, and the Relative Strength Index at around 63 leaves room for additional gains. On the 4-hour chart, Ethereum has reclaimed the 100% Fibonacci retracement level near $1,897 after holding above the 78.6% retracement around $1,815. MACD remains positive with widening bullish momentum, and Chaikin Money Flow above zero suggests capital continues to enter the market.
Crypto analyst Daan Crypto Trades noted on X: "ETH Breaking above the $1.8K level and saw some good continuation so far. The market structure has flipped back to bullish on this timeframe." He added that the next major high-timeframe resistance sits near $2,100, while maintaining $1,800 as support remains critical. Another trader, Ted Pillows, wrote: "$ETH has fully reclaimed its key resistance level. If Ethereum manages to hold above the $1,850 level, the pump towards $2,000 will be next."
Risks and support levels
Despite the improving setup, Ethereum faces hurdles before reclaiming $2,000. The liquidation heatmap shows heavy leveraged positioning between $1,900 and $1,950, where sellers may attempt to defend resistance. Macro risks also remain: any resurgence in inflation, renewed geopolitical tensions, or hawkish Fed comments could reverse sentiment. From a technical perspective, losing the $1,850 support would invalidate the breakout and shift attention back toward $1,815, followed by $1,750. As long as Ethereum posts higher highs while defending $1,850, however, the probability of a move toward $2,000 and potentially the $2,100-$2,190 resistance region remains favorable.