Ethereum Hits $1,950 as Short-Term Rebound Triggers Debate on Next Move

Ethereum has tested $1,950 for the first time in seven weeks, marking a short-term rebound in the market. The price rise was triggered by $62 million of liquidations in leveraged short positions, according to Cointelegraph.

The move comes as the broader crypto market recovers from its June lows, with Bitcoin surpassing $66,500. Ethereum's price has risen 29% since then, but underlying indicators remain weak.

Demand for blockchain processing and trading volume are still low, while major Ethereum-based projects such as Ethena, Mantle, and Arbitrum have dropped by over 50% from the start of the year. Network revenue and trading volume are also weak, with weekly revenue for Ethereum-based DApps falling to $9.8 million, the lowest level since September 2024.

However, staking's share has climbed to a record high, with 34% of total Ethereum supply staked. Expectations have emerged that selling pressure could ease as long-term holders continue to absorb supply. Tom Lee's BitMine has also bought an additional 156,719 ETH over the past month, with its holdings now accounting for about 4.8% of circulating supply.