TLDREthereum has surged more than 5% over the last 24 hours, successfully retaking the $1,650 thresholdOver $92 million worth of short positions in ETH were liquidated, driving the price recoveryInstitutional sentiment appears weak with spot ETF outflows totaling -$358.3 million since mid-JuneA historically significant TD Sequential monthly buy indicator has emerged—previously preceding gains of 235% and 182%Crypto analyst Ted Pillows warns ETH needs to break above $1,700–$1,750 or risk declining toward yearly lowsEthereum has staged an impressive recovery, climbing more than 5% during the past 24 hours and reclaiming territory above the $1,650 mark following extended downward pressure. The world’s second-largest digital asset has now posted an 8.05% gain across the past seven days, despite trading significantly beneath the $2,000 threshold it surrendered earlier this year.Ethereum (ETH) PriceThe upward movement received significant assistance from a cascade of forced position closures. Approximately $92 million in bearish ETH positions were eliminated as prices accelerated upward, creating a short squeeze dynamic. Throughout the wider digital asset ecosystem, total liquidations exceeded $475 million within the identical 24-hour period.Ethereum’s derivatives activity also experienced notable growth. Futures trading volume for ETH increased by nearly 29% to reach $43.4 billion, while open interest pushed above $22.8 billion. Options trading volume surged almost 57% to $915 million. The combination of rising open interest alongside price appreciation indicates new money flowing into the market rather than merely short position exits.Funding rates have maintained positive territory, indicating that optimistic traders are willing to pay premiums for maintaining long exposure. This reflects short-term bullish sentiment among active participants.Monthly Buy Signal Raises EyebrowsCryptocurrency analyst Ali Martinez highlighted on X that July commenced with a buy signal appearing on the monthly chart from the TD Sequential technical indicator. This identical signal materialized in September 2022 and March 2025. Following those previous occurrences, ETH delivered rallies of 235% and 182% respectively. Martinez’s observation has garnered considerable attention given how ETH’s current rebound from the $1,549 level aligns with the -1.0σ band on Ethereum’s MVRV extreme deviation pricing framework.ETHEREUM: BULLISH REVERSAL SIGNALThe month of July has officially kicked off with a massive technical signal. The Tom DeMark (TD) Sequential indicator has just printed a buy signal on Ethereum’s monthly chart.While a lot of volatility can play out within a newly opened… https://t.co/LNkygeYlUV pic.twitter.com/U8t1iKl3Th— Ali Charts (@alicharts) July 2, 2026However, spot Ethereum flows present a contrasting narrative. Since June 17, Ethereum spot ETFs have experienced cumulative net outflows totaling $358.3 million, suggesting limited confidence among institutional participants.Key Price Levels to WatchAnalyst Ted Pillows noted on X that while ETH has moved back above $1,600, it must successfully reclaim the $1,700–$1,750 range to validate any genuine upward momentum. Failure to do so leaves ETH vulnerable to sliding back toward its yearly lows.$ETH is back above the $1,600 level.Ethereum needs to reclaim the $1,700-$1,750 level for any strong upside; otherwise, ETH will drop towards yearly lows again. pic.twitter.com/djmswISyH9— Ted (@TedPillows) July 2, 2026Technically, the next significant resistance barrier stands at $1,700, with a secondary zone at $1,800–$1,850 where the 50-day moving average currently resides. On the downside, a breach below $1,600 could trigger a retest of the $1,550 support level.Large holder activity has also attracted market attention. Notable crypto investor Machi Big Brother reportedly expanded ETH holdings after reducing exposure to various NFT assets, fueling speculation that sophisticated players view current valuations as attractive entry opportunities.ETH is currently changing hands near $1,650 as of July 2, 2026, with the $1,700 level representing the immediate challenge for bullish traders.The post Ethereum (ETH) Flashes Rare Monthly Indicator That Sparked 200%+ Rallies Before appeared first on Blockonomi.