Ethereum Rally Stalls at $2,000, Bearish Leg Fears Grow

Ethereum's price has stalled in its rally towards $2,000, prompting concerns that another bearish leg may be beginning.

The price of Ethereum was down 1.77% in the past 24 hours, with daily trading volume dipping by just over 6%. Open Interest has slid by 3.2%, according to data from CoinGlass.

The derivatives market saw aggressive sell pressure in the past 48 hours, with around $67 million in long liquidations measured from July 22. This forced sell orders to close positions in perpetual markets, increasing sell pressure on Ethereum.

Data from CryptoQuant shows that the funding rate was positive but declining, having dipped from +0.0088% to +0.0054% since the first week of July. The taker buy/sell ratio also fell into negative territory recently, but its 7-day moving average has not slipped below zero.

The Ethereum price action is likely to turn bearish now, with the network's validator queue having dropped to zero and no waiting time signaling conviction from long-term stakers. However, the price charts told a different story, remaining firmly bearish on the 1-day timeframe.