Ethereum broke a multi-year descending trendline as crypto futures open interest spiked to $19.8 billion on July 14 and ETH traded near $1,928, up 5.2% in 24 hours. Long liquidations dominance fell to a yearly low of 4%, signaling a short squeeze and reinforced by a reported $24.3 million 25x ETH long with liquidation at $1,833, while weekly trendline and support around $1,754–$1,600 add structural bullish conviction. However, declining volume leaves the breakout unconfirmed until a daily close above $1,900–$2,000 on rising participation validates a move toward the $2,438 0.618 Fibonacci target; a drop below $1,754 would invalidate the setup.

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In Brief

Ethereum broke its descending trendline as futures open interest hit $19.8 billion.
Long liquidations dominance fell to a yearly low of 4%, signaling a short squeeze.
Declining volume leaves the breakout unconfirmed below $1,900 to $2,000 resistance.

The Ethereum (ETH) price broke out of a descending trendline that had capped it since the all-time high, while futures open interest climbed to $19.8 billion. ETH trades near $1,928, up 5.2% in the last 24 hours.

Derivatives positioning, liquidation data, and long-term chart structure now point in the same bullish direction. However, one missing ingredient still keeps the breakout unconfirmed.

Futures Traders Return as Open Interest Nears $20 Billion

Glassnode data shows Ethereum futures open interest across all exchanges spiked to $19.8 billion on July 14. That is the highest reading since June 3, when a market-wide deleveraging event reset positioning.

Open interest measures the total value of outstanding futures contracts. Rising open interest alongside a rising price suggests new capital is entering the market rather than shorts simply covering.

ETH Open Interest. Source: Glassnode

The metric had collapsed to approximately $15.5 billion in late June. Its sharp recovery indicates traders are returning to ETH derivatives with conviction. Elevated positive funding on Ethereum supports the same reading.

Whale trader Machi Big Brother reportedly opened a $24.3 million ETH long at 25x leverage, with liquidation set at $1,833.

Machi Big Brother has opened a $24,300,000 $ETH long with 25x leverage.Liquidation Price: $1,833 pic.twitter.com/4r0X6aOZ0g
— Ted (@TedPillows) July 15, 2026

A drop back below the June range would flip this signal and suggest the new positioning was short-lived.

Long Liquidations at a Yearly Low of 4% Point to a Short Squeeze

The composition of recent liquidations strengthens the bullish case. Ethereum futures long liquidations dominance fell to 4%, its lowest level in a year, according to Glassnode.

In plain terms, only 4% of liquidated positions were longs. The remaining 96% were short traders forced out as the price pushed higher.

ETH Long Liquidations Dominance. Source: Glassnode

Still, squeeze-driven rallies carry a caveat. Forced short covering can exaggerate upside moves, as the June 3 liquidations cascaded to exaggerate the downside. Spot demand must follow for the move to hold.

A return of dominance above 50% would indicate that longs are absorbing damage again and would weaken the momentum signal.

Ethereum Price Holds the Trendline From the 2022 Bottom

The weekly chart shows why the current level matters so much. An ascending trendline drawn from the June 2022 bottom, respected throughout the previous bull market, held near $1,600 once again.

The bounce also occurred inside a long-term green demand zone that has served as support four times since early 2023. Moreover, the area coincides with the 0.786 Fibonacci retracement of the entire cycle at $1,754.

ETH weekly chart. Source: Tradingview

This triple confluence of trendline, horizontal support, and Fibonacci level makes the zone a structural line in the sand. The next major resistance sits far above, at the 0.618 Fibonacci retracement of $2,438.

ETH Price Prediction as the $2,000 Test Looms

On the daily chart, Monday’s 6.5% green candle broke above a descending trendline in place since the all-time high. That line had rejected the ETH price five times before this breakout.

ETH daily chart. Source: Tradingview

The daily Relative Strength Index (RSI) confirms the shift in momentum. It broke out of its own descending trendline, drawn from July 2025, and now sits just below 65.

ETH daily RSI chart. Source: Tradingview

One warning sign remains. Volume has been declining during the recovery, so the breakout lacks confirmation from participation. Analysts watching the ETH/BTC ratio see early signs of a broader Ethereum comeback that could fill the missing demand.

Immediate resistance lies between $1,900 and $2,000. A confirmed daily close above that zone on rising volume could open the way toward $2,438, nearly 30% above the current price.

On the downside, $1,754 is the critical support. Losing it would expose the trendline near $1,600, and a weekly close below that level would invalidate the bullish structure entirely.

Either volume arrives to validate the breakout, or ETH returns to the zone that has saved it four times already.

Read the article at BeInCrypto