Key Takeaways

• Ethereum surged to $2,967 after short liquidations and bullish macro data. Shrinking exchange reserves, whale accumulation, and strong derivatives positioning support upside, though overbought signals may trigger short-term resistance near $3K

Ethereum’s [ETH] price surged sharply following two short liquidation events near $2.7K and $3K, triggered by bullish U.S. jobless claims data released on the 10th of July. 

This data surprised the market by coming in below expectations, signaling economic resilience and reducing recession fears. As a result, aggressive buying on Binance combined with thin liquidity forced massive short liquidations. 

At press time, ETH traded around $2,967, pushing Open Interest close to $7 billion. 

This dynamic reflects renewed leverage from traders anticipating continued upside as macroeconomic optimism ripples through high-beta assets like crypto.

Are shrinking exchange reserves setting the stage for more upside?

Meanwhile, Ethereum’s Exchange Reserves have dropped by 2.03% to $56 billion, indicating reduced sell-side pressure. Lower reserves often signal investor intent to hold, especially during phases of bullish sentiment. 

With fewer coins available on exchanges, the market becomes more sensitive to demand spikes. This condition aligns with the recent derivatives-driven rally, where ETH broke above resistance

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Author: Erastus Chami