A single inflation print was enough to turn the tide. On July 15, 2026, Ethereum (ETH) surged nearly 5% to reclaim the $1,850 resistance level - driven by softer-than-expected US inflation data that immediately ignited a sharp short squeeze across the market.
The catalyst was the US Consumer Price Index (CPI) for June, which landed below expectations. The figure eased market concerns that Fed Chair Kevin Warsh would continue aggressive interest rate hikes. The effect spread quickly: risk assets rallied in unison across global markets, with tech stocks rising alongside crypto as investors began pricing in looser monetary policy.
Chart Signals Giving Bulls Confidence
It is not just macro sentiment supporting the rally; technical indicators are also flashing green. Aroon Up registered above 92 while Aroon Down plunged to zero - a strong signal that bulls remain firmly in control of the trend. The RSI rose to around 63, indicating there is still room to climb before entering overbought territory.
On the 4-hour chart, ETH has reclaimed the 100% Fibonacci retracement level around $1,897 after previously holding above the 78.6% retracement level near $1,815. The MACD remains in positive territory with widening bullish momentum, while Chaikin Money Flow sits above zero - signaling capital continues to flow into the market rather than exit.
Next Target: $2,000 and Shrinking Supply
If the $1,850 resistance is decisively cleared, the next target is the psychological $2,000 level - and breaking above it could trigger an additional wave of liquidations that accelerates the climb. Analysts have also weighed in. Daan Crypto Trades noted on X that ETH broke $1,800 with strong trend continuation and that the market structure has flipped bullish on this timeframe, highlighting $2,100 as the next major resistance and $1,800 as crucial support. Another analyst, Ted Pillows, suggested the next milestone could arrive quickly: if buyers can keep ETH above $1,850, a surge toward $2,000 is expected to follow.
Structural factors are reinforcing this narrative. Circulating ETH supply continues to tighten as a significant portion of the asset remains locked in staking, limiting available exchange balances even as demand increases. Progress on US crypto regulations and spot ETF adoption have also kept institutional appetite strong - despite previous weeks seeing market turbulence from Middle East tensions and government-linked crypto transfers.
Don’t Overlook the Other Side of the Board
While optimism is justified, the risk landscape must still be monitored. This bullish scenario could reverse quickly if inflation reignites, geopolitical tensions flare to drive oil prices sharply higher, or unexpected hawkish remarks emerge from Fed officials. All three carry the potential to flip risk sentiment in an instant. For now, momentum is firmly with buyers - but in the crypto market, the $2,000 level will not fall without a fight.
Via crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
