Will Ethereum price reclaim $2,000 next as CPI relief sparks breakout above $1,850?

Ethereum price has reclaimed the $1,850 resistance after softer-than-expected U.S. inflation data triggered a sharp short squeeze, putting the $2,000 level back into focus for traders.

Summary

• Ethereum price broke above $1,850 after softer U.S. CPI data sparked a broad crypto rally.
• Technical charts and liquidation clusters suggest $2,000 is the next major price target.
• Analysts say holding $1,850 as support is key to sustaining the current bullish trend.

The second-largest cryptocurrency climbed nearly 5% on July 15 after June’s Consumer Price Index came in below expectations, easing concerns that Federal Reserve Chair Kevin Warsh would resume aggressive rate hikes. Risk assets rallied across global markets, with tech stocks advancing alongside cryptocurrencies as investors priced in a more accommodative policy outlook.

Derivatives markets amplified the move. CoinGlass liquidation data shows a dense cluster of leveraged short positions between $1,800 and $1,850 was wiped out as Ethereum broke through resistance. Forced buybacks accelerated the rally toward $1,900, while the latest liquidation heatmap now shows fresh liquidity pockets concentrated around $1,900-$1,950.

Ethereum liquidation heatmap | Source: CoinGlassA successful push through that zone could expose another wave of liquidations and open a path toward the psychological $2,000 level.

Technical breakout puts $2,000 back in play

Ethereum’s daily chart shows the recovery has developed from a series of rounded-bottom formations that formed after June’s selloff to nearly $1,500. Price has now completed a breakout above the neckline near $1,850, a level that capped several recovery attempts over recent weeks. The measured move from the pattern projects a target close to $2,190, matching a major resistance zone from earlier this year.

Ethereum daily price chart — July 15 | Source: crypto.newsMomentum indicators continue to favor buyers. The Aroon Up indicator stands above 92 while Aroon Down has dropped to zero, suggesting bulls retain control of the prevailing trend. Relative Strength Index has climbed to around 63, leaving room for additional gains before reaching overbought territory.

The 4-hour chart reinforces the bullish structure. Ethereum has reclaimed the 100% Fibonacci retracement level near $1,897 after holding above the 78.6% retracement around $1,815. MACD remains in positive territory with widening bullish momentum, while the Chaikin Money Flow reading above zero suggests capital continues to enter the market rather than leave it.

Ethereum 4-hour price chart — July 15 | Source: crypto.newsCommenting on the breakout, crypto analyst Daan Crypto Trades wrote on X:

“ETH Breaking above the $1.8K level and saw some good continuation so far. The market structure has flipped back to bullish on this timeframe.”

He added that the next major high-timeframe resistance sits near the $2,100 region, while maintaining $1,800 as support remains critical for bullish momentum.

Another closely followed trader, Ted Pillows, believes the next milestone could arrive quickly if buyers defend current levels. “$ETH has fully reclaimed its key resistance level. If Ethereum manages to hold above the $1,850 level, the pump towards $2,000 will be next,” he wrote.

Outside the charts, Ethereum continues to benefit from tightening on-chain supply. A large share of circulating ETH remains locked in staking, limiting readily available exchange balances even as demand improves.

At the same time, regulatory progress surrounding U.S. crypto legislation and spot ETF adoption has kept institutional interest intact after several weeks of macro-driven volatility tied to Middle East tensions and government-linked crypto transfers.

Loss of $1,850 support would weaken the bullish case

Despite the improving setup, Ethereum still faces several hurdles before reclaiming $2,000. The liquidation heatmap shows heavy leveraged positioning between $1,900 and $1,950, where sellers may attempt to defend resistance. Failure to absorb that supply could trigger another round of profit-taking after the recent rally.

Macro risks also remain. Any resurgence in inflation, renewed geopolitical tensions that drive oil prices sharply higher, or unexpectedly hawkish comments from Federal Reserve officials could reverse sentiment across risk assets.

From a technical perspective, losing the newly reclaimed $1,850 support would invalidate the breakout and shift attention back toward $1,815, followed by the stronger demand zone around $1,750. As long as Ethereum continues to post higher highs while defending $1,850, however, the probability of a move toward $2,000 and potentially the $2,100-$2,190 resistance region remains favorable.