A new trading week and a new month have begun, with Ethereum ending July nearly 50% higher. This notable performance has prompted renewed interest in the asset’s next possible move. The analysis below outlines key observations based on recent price action.

Ethereum technical analysis

ETHUSD - 1 Day Time Frame

One of the most striking developments is the growing liquidity above the high from last December. The recent impulsive upward movement has brought the price close to this level.

Based on market structure theory, this zone likely hosts a concentration of Stop Loss orders, often placed just above prior highs to protect short positions. Entering short positions without a prior sweep of this liquidity may carry elevated risk, even though limited short-term downside movement cannot be ruled out.

The basis for a potential bearish correction can be found in the most recent resistance zone, marked in orange on the accompanying chart. These zones tend to form during impulsive price movements. In this case, the market experienced a strong downward leg that was not met with an immediate bullish reaction, indicating that bearish price delivery remains active.

However, this condition appears to be short-term and may continue only until the price reaches the 0.5 Fibonacci retracement level—commonly referred to as the discount zone.

Ethereum price target

Should the price instead close above the marked resistance zone on the daily timeframe with a clear bullish move, this would likely invalidate the active bearish structure. In such a scenario, buy-side setups could become more relevant.

Potential targets in this case may include Buy-Side Liquidity levels and, ultimately, Ethereum’s all-time high (ATH) of $4,867.