Ethereum price climbs toward $1,800 as short squeeze and risk-on rally gather pace

Ethereum price has rebounded to nearly $1,800 after easing geopolitical tensions and an aggressive short squeeze across crypto derivatives restored appetite for risk assets, while traders now watch whether bulls can force a breakout above a key technical ceiling.

The second-largest cryptocurrency has recovered sharply from this week’s low near $1,505, when U.S. strikes on Iranian targets triggered a broad sell-off across digital assets. Sentiment reversed over the past 24 hours after fears of further escalation subsided, prompting investors to rotate back into higher-risk assets

A wave of forced short liquidations accelerated the move, pushing ETH through several resistance levels and back toward the psychologically important $1,800 mark.

Asian markets added another catalyst. South Korea’s Kospi index jumped roughly 4% as artificial intelligence and semiconductor stocks rallied, encouraging a wider return to growth assets.

Ethereum participated in that rotation despite U.S. spot Ether ETFs recording a combined net outflow of about $52 million on Thursday, suggesting overseas spot demand and crypto-native buying more than offset weaker institutional flows in the United States.

Fresh regulatory developments also improved sentiment. CFTC leadership has urged the U.S. Senate to advance the Digital Asset Market Clarity Act, a proposal that would establish a clearer regulatory framework for digital assets.

At the same time, Ethereum continues to dominate the tokenized real-world asset market with nearly half of global RWA value secured on its network, reinforcing the chain’s position as institutional tokenization activity expands.

Ethereum has reclaimed key resistance, but $1,800 remains the decisive hurdle

The daily chart shows Ethereum reclaiming the 2/8 Murrey Math pivot near $1,750 after bouncing from the 0/8 support around $1,500. Price is now testing the upper edge of that range near $1,800, while the Chaikin Money Flow has climbed back into positive territory at 0.08, suggesting capital has started returning after weeks of sustained selling.

On the 4-hour chart, ETH has broken above the 78.6% Fibonacci retracement at approximately $1,773 and is trading just below resistance near $1,833. Momentum has strengthened as the MACD completes a fresh bullish crossover with expanding positive histogram bars, while the RSI has climbed above 62 without yet entering overbought territory. Together, those indicators leave room for another advance if buyers maintain control.

Derivatives positioning supports the technical picture. CoinGlass liquidation data shows one of the largest short liquidation clusters sitting between $1,790 and $1,810. A sustained move above that zone could trigger another round of forced buying, while the next concentration of leveraged positions appears closer to $1,850. As long as those liquidity pockets remain overhead, volatility is likely to stay elevated.

Commenting on the latest structure, analyst Ted Pillows wrote:

“ETH is holding above the $1,750 level, which is a good sign. Spot demand is picking up a bit, which could push Ethereum towards the $1,850–$1,900 zone in the coming weeks.”

Separately, fellow analyst Alex Marzell argued that Ethereum has bounced from the lower boundary of a long-term descending channel and believes “one clean breakout above the upper trendline could change everything.”

Failure to hold $1,750 would weaken the recovery setup

Despite the improving momentum, Ethereum has not yet confirmed a trend reversal. The $1,800-$1,833 region combines Fibonacci resistance with a dense liquidity pocket, making it the first major test for bulls.

Repeated rejection from that area would increase the likelihood of another move toward $1,725, while a break below $1,750 would expose the $1,620-$1,550 support region that launched the current recovery.

Macro risks also remain. Any renewed escalation in the Middle East, stronger-than-expected U.S. inflation data, or another wave of ETF outflows could reduce demand for risk assets and interrupt Ethereum’s recovery. Until buyers establish support above $1,800, the current advance remains a recovery rally rather than a confirmed long-term trend reversal.