Ethereum's Weak Demand Exposed at $2,000
Ethereum's failed attempt to break through the $2,000 mark is exposing weak demand beneath its recent price surge. Despite gaining 23% in the month of July and posting a fresh local high of $1,981, Ethereum has now approached $2,000 twice in six weeks and been sold both times on declining momentum.
The rejection matters more than the rally, as it suggests that there is no real conviction behind the recent price gains. Daily RSI sits at 53.82 - neutral - while the hourly reads 35.09 and approaches oversold, indicating a lack of buying power.
The proximate trigger for the rejection was derivatives. Deribit's monthly settlement cleared 435,000 ETH contracts carrying $830 million of notional value at 08:00 UTC, with a put-call ratio of 0.63 and max pain at $1,850. Ether traded near $1,891 immediately after settlement and broke lower once the pinning influence lifted.
The broader backdrop offered nothing to support Ethereum's rally. Bitcoin fell 3% through $63,000 to $62,478, while the iShares Ethereum Trust dropped 3.79%. The CLARITY Act's Senate window effectively closed with the August recess days away.