Ethereum (ETH) is showing early signs of a bullish pivot after a 7-day correction brought the price down by 14%. The pullback, triggered after ETH touched resistance near $2,880, has now retested a key support zone around $2,454, where buyer interest appears to be returning.
Support Retest Signals Bounce Potential
Since mid-May, Ethereum has traded within a narrow but ascending channel, shaped by rising support and resistance lines. Last week’s drop pushed ETH directly into the channel’s lower boundary, a level that has previously acted as a reliable launchpad for recovery moves.
ETH touched a local bottom at $2,454, a level that also aligned with the 50% Relative Strength Index (RSI) zone — historically a neutral zone for directional shifts.
As of now, Ethereum is trading just above $2,500, hinting that buyers may be stepping in to defend this level.
Spot Flow Turns Positive for the First Time Since June 9
One encouraging sign for bulls is the return of positive spot flows, indicating a shift from selling pressure to demand in the spot markets. According to on-chain metrics, this is the first time spot inflows have turned positive since June 9 — suggesting growing confidence among retail and institutional investors alike.
If these flows persist, Ethereum could have the momentum needed to challenge $2,800–$2,880, which has acted as resistance for over a month.
Open Interest Rebounds: Futures Traders Re-Enter
Ethereum open interest (OI) — a measure of active futures contracts — has also shown a bounce after falling sharply during the recent correction. This resurgence signals that traders are positioning for a potential upside move, possibly anticipating a short-term bullish swing within Ethereum’s current range.
Rising OI and stable funding rates often signal healthy long positions rather than overly speculative leverage.
What’s Next for ETH?
With ETH holding above $2,500 support, and technical indicators like RSI and spot flows flashing bullish, a recovery toward $2,800 seems plausible. However, traders should watch for volume confirmation and resistance pressure near $2,750–$2,880.
Conclusion
Ethereum’s price structure suggests a potential 10–15% upside if support continues to hold and demand grows. With spot flows turning positive and open interest climbing, ETH bulls may get another chance to test higher levels in the coming days.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.