ETH Breaks Key July Channel Below $1,900 Amid $98.8M Liquidations

Woofun AI reports that Ethereum (ETH) has decisively broken below its July recovery channel, a structural failure confirmed after price remained outside the formation for five consecutive daily sessions following the breakdown on July 23. The immediate technical landscape is defined by the loss of the 100-day simple moving average near $1,950, which now acts as resistance, while despite this short-term failure, ETH has technically cleared a descending trendline that capped price action for roughly 11 months.

The price action since the breach has been characterized by failed attempts to reclaim the former channel boundaries. Recent rallies tested the area from below but were rejected near the $1,950 level, preventing a return into the structure. This rejection zone sits just beneath the 100-day simple moving average, leaving ETH hovering near the 0.382 Fibonacci support level around $1,870. A successful defense of $1,870 is required to facilitate another attempt at $1,950; breaching that level would allow buyers to retest the 100-day SMA and the 0.5 Fibonacci retracement near $1,980. Conversely, a daily close below $1,870 exposes the 0.236 retracement near $1,730. The broader context remains bearish, as ETH trades below both its 100-day and 200-day moving averages, with the latter positioned near $2,130, and remains under the larger downtrend extending from its multi-year high.

Woofun AI data shows that liquidation data highlights the severity of the sell-off, with Coinglass recording $98.8 million in Ethereum liquidations over a 24-hour period. The imbalance was stark: long positions accounted for $76.9 million of the total, compared to only $21.9 million in short liquidations. This distribution indicates that the price rejection forced heavily leveraged bullish traders out of the market. While the removal of this excessive leverage may reduce immediate cascading liquidation pressure, the market still requires fresh demand to stabilize and develop a meaningful recovery.

Positioning metrics further reflect the shift in market sentiment. The OI-weighted funding rate moved below zero after remaining positive through much of July. Because this metric weights markets with larger open interest more heavily, the negative shift suggests that leveraged positioning has tilted slightly towards shorts. This reduction in long concentration contrasts with earlier bullish bets and could potentially strengthen a rebound if short sellers are forced to cover their positions.

However, negative funding rates alone do not confirm the return of sustained buying pressure.

Capital flow dynamics present a mixed picture between derivatives and spot markets. Ethereum futures recorded a three-day net inflow of $284 million, marking a return of capital after a seven-day net outflow of $676 million. This resurgence in futures activity indicates that traders are rebuilding exposure following the previous week’s reduction, which could amplify the next price move while ETH remains below its former channel. In contrast, spot flows offer less support, with Coinglass recording a 12-hour net outflow of $30.7 million. Although one-, four- and eight-hour readings have moved into positive territory, these shorter-term inflows have not yet offset the broader 12-hour withdrawal, explaining why ETH has stabilized near $1,880 without recovering the resistance above.

On a longer-term technical horizon, the break above the descending trendline identified by Ash Crypto improves the structural outlook and could support sentiment across the altcoin market.

However, this development does not confirm a full reversal of the larger downtrend. The asset remains constrained by key moving averages and the overarching bearish structure from its multi-year high, meaning the recent trendline break is more of a neutralizing factor than a bullish confirmation.

The immediate focus for ETH is whether it can recover $1,950 and reclaim the broken July channel from below. Failure to hold this level keeps the breakdown active, while a close beneath $1,870 shifts attention to the $1,730 support zone. This marks a critical juncture where technical structure and capital flows will determine the near-term trajectory.