Ethereum Breaks Out Through Resistance Amid Stronger ETF Inflows

Ethereum's price surged by 3.8% over the last ~21 hours, with technical analysts attributing this move to a clean breakout through resistance and a short squeeze, amplified by stronger ETF inflows and tight supply from staking.

The breakout occurred as Ethereum held above a broken descending trendline, forming higher highs and higher lows, and pressed into a $1,880, $1,910 resistance 'supply zone', with further resistance near the 100-day MA around $1,950 and the $2,000 region as the next major target.

This technical break triggered algorithmic and discretionary breakout buying, forcing short sellers to cover, and pulling in momentum traders chasing the move. The kind of mechanical flow visible in liquidation data showed ETH leading the market in liquidations at about $35.2 million, with roughly $32.1 million coming from short positions.

In parallel, spot Ethereum ETFs saw about $103.9 million of net inflows for the week ending July 24, making breakouts more 'believable' to traders. The ETH/BTC pair has bounced from a local bottom, and ETH/USD's reclaim of key support increases the probability that ETH will outperform BTC if the market grinds higher.

Record staking participation and a large queue to enter staking reduce the immediately tradable float of ETH, making incremental buy orders and stop-outs move price a bit farther and faster than they otherwise would.