ETH bulls briefly pressed the price above the $2,000 mark, raising questions about whether a positive funding rate and increased holder profitability can maintain momentum. A daily close above $2,100 is crucial, as this level aligns with the cost basis of large ETH holders. Recently, Ether reached a weekly high of $2,150, a critical threshold for significant investors. However, ongoing volatility in both crypto and stock markets has resulted in corrections below the $2,000 mark.

The importance of a daily close above $2,100 cannot be overstated. This level coincides with the realized price of wallets holding 100,000 or more ETH, which serves as a profitability gauge. Historically, Ether has traded below this whale cohort's realized price only a few times, notably during the 2022 bear market. When the price has tested this level as support, it has often recovered, signaling potential for a bullish reversal.

Market analyst Dom observed that the current setup offers a “good clean look for the whole market.” A recent price tap on the one-month rolling VWAP suggests that acceptance over $2,140 could indicate a shift in short-term order flow. Conversely, failing to maintain a higher level would keep prices confined within the established range.

Liquidations have also played a significant role in the current market dynamics. Over the past two days, short liquidations exceeding $220 million have cleared overhead leverage. This has resulted in approximately $2.66 billion in cumulative long liquidation exposure sitting near the $1,800 level, creating a liquidity pocket below the current price.

In addition, a notable shift in funding rates on Binance has caught the eye of traders. After flipping sharply negative earlier in the month due to aggressive short positions, the funding rate has since returned to positive territory at 0.23%. This indicates that late shorts have been squeezed out of their positions, and traders are now leaning toward long positions. However, this shift raises concerns about a potential long squeeze near the $1,800 level, especially if price momentum stalls or reverses.

Market analysts, including IncomeSharks, have identified several technical hurdles that ETH must overcome. These include repeated rejections at the super trend indicator and channel resistance near $2,250. The SuperTrend uses volatility to define trend direction, flipping red when the price trades below it. Each rebound has faced rejection at this level, indicating that sellers remain in control.

With traders keeping a close eye on various price levels, watching for renewed buying interest near the April lows around $1,500 is essential. This level resides between the weekly demand zone of $1,691 and $1,384, which could serve as critical support before any sustained move above $2,500 materializes. Market participants are advised to conduct their own research before making any trading decisions, as the crypto market remains highly volatile and unpredictable.