Ethereum recovers from key support levels as open interest jumps 4.75%, and short liquidations exceed $34 million. Key resistances are at $2,699 and $2,800. At press time, Ethereum records a 3% intraday gain, mirroring Bitcoin’s bullish recovery. Amid a broader market rebound, the declining Ethereum exchange reserves, alongside growing optimism in the derivatives market, signal a potential upside. Ethereum Price Analysis Eyes Breakout Above $2,699 On the daily chart, Ethereum exhibited a major bullish failure last week, unable to hold above the 50% Fibonacci level at $2,699. This led to a price drop to a weekly low of $2,439, followed by a bullish reversal. Ethereum Price Chart With long lower shadows on recent candles, Ethereum has rebounded to a market price of $2,626, indicating a bullish turnaround. As it aims to retest the 50% Fibonacci level, the surge in bullish momentum increases the likelihood of a breakout. The MACD and signal lines are nearing a bullish crossover, while the RSI is reversing upward from the midpoint, indicating growing buying pressure. Thus, technical indicators remain optimistic for Ethereum. According to Fibonacci levels, a breakout above the 50% level could target the 61.8% Fibonacci level at $3,003. However, the recent peak near $2,800 could serve as intermediate resistance. On the downside, critical support remains at the 38.2% Fibonacci level at $2,395. Supply Pressure Eases Amid Declining Ethereum Reserves According to CryptoQuant data, last week’s bullish failure followed a brief spike in Ethereum’s exchange reserves, reaching a weekly high of 18.89 million ETH. However, as the market recovers, investors are again withdrawing ETH from centralized exchanges, reducing selling pressure. Currently, the exchange reserve stands at 18.67 million ETH, approaching the all-time low of 18.63 million ETH recorded on June 4 Ethereum Exchange Reserve<span></span> Bulls Gain Ground in Ethereum Derivatives Market CoinGlass data indicates growing optimism in Ethereum as the broader market rebounds. Ethereum’s open interest is up 4.75%, reaching $36.30 billion, while the OI-weighted funding rate stands at 0.0046%. This reflects an increase in bullish sentiment and expectations of a sustained recovery.. Ethereum Derivatives In the past 24 hours, liquidations reveal a bullish bias, with $34.65 million in short positions liquidated compared to $18.03 million in long positions. Following the significant short squeeze, the long-to-short ratio has climbed to 1.0627, indicating a bullish imbalance in open positions.