Ethereum ends a streak of three consecutive quarterly declines, with a strong rebound at the start of Q3. Ethereum has logged a historically rare move—marking the first time ever that it has closed lower for three straight quarters.

After the third quarter begins, the voyage sees a clear turnaround, entering a strong “repair and recovery” mode. On the evening of July 2, the release of non-farm payroll data sparked volatility in the market, and Ethereum broke through the $1,700 level, fully reversing the short-term weakness.

This swift rebound has put severe pressure on market shorts. Well-known on-chain short whale sat0shi777 was dealt a major blow; its nearly $90 million in Ethereum short positions triggered partial forced liquidation. In just half an hour, the address liquidated a total of 31.6k ETH, worth approximately $53.5 million, ultimately leading to a floating loss of more than $4.5 million.

At present, the remaining short risk of roughly $38 million is still extremely high. The liquidation price is $1,764, leaving only a $50 floating range versus the coin’s price at the time—meaning it could face a complete “bunker blast”/full position liquidation at any moment.

Meanwhile, market institutional sentiment continues to improve. BitMine executive Tom Lee noted that in the second half of 2026, the ETH-to-BTC ratio has ample upside momentum. A core partner at Dragonfly also publicly stated a bullish long-term view on the future performance of ETH and SOL.

After three quarters of sustained declines, it’s still unclear whether the direction of market capital flows has completely reversed. And this strong rebound at the start of Q3 will become a key window for observing whether Ethereum’s trend can turn around.