Ethereum climbs back above $1,600, but can the rebound keep going?

Ethereum has returned above $1,600 for the first time in days as buying interest has picked up, leaving traders watching whether renewed demand can turn the rebound into a lasting recovery.

According to CoinGecko, Ethereum ETH traded at around $1,617 at the time of writing after gaining 2.49% over the past 24 hours. 

ETH moved between $1,564.82 and $1,637.22 during the session, giving it a market capitalisation of about USD 194.9 billion (approx. $284 billion) and a daily trading volume of USD 10.8 billion (approx. $15.8 billion).

The latest advance has lifted ETH above the psychologically important $1,600 level after days of persistent selling pressure. 

Recent price action shows buyers defending the $1,500-$1,550 region before gradually pushing prices higher. 

While the rebound has improved short-term sentiment, ETH still remains below the $1,700-$1,800 range where previous recovery attempts have stalled.

ETF inflows, staking, and institutional buying support ETH

Fresh demand from US spot Ethereum exchange-traded funds has provided one of the first signs of renewed buying interest.

Data from SoSoValue showed spot Ethereum ETFs recorded net inflows of USD 14.9 million (approx. $21.7 million) on July 1. 

BlackRock's ETHA led the group with USD 36.6 million (approx. $53.4 million) in daily inflows after several sessions of persistent withdrawals.

The latest inflows followed a difficult stretch for Ethereum investment products.

US spot Ethereum ETFs recorded USD 273 million (approx. $397.8 million) in net outflows during the week ending June 26, with BlackRock's ETHA accounting for USD 236 million (approx. $343.9 million) of those redemptions.

ETF flows remain an important factor because positive subscriptions require fund managers to acquire ETH in the spot market, while sustained outflows can increase selling pressure through redemptions. 

Elsewhere, Ethereum's staking participation has continued climbing even as the token trades well below its previous highs.

According to CryptoQuant analyst EgyHash, Ethereum's staking rate has exceeded 33% for the first time, reaching roughly 33.06%. 

The analyst said the proportion of staked ETH has continued rising since the Merge despite several market cycles, suggesting many investors continue locking their holdings instead of selling during periods of price weakness.

EgyHash added that increasing staking participation reduces the amount of ETH immediately available for trading, although the analyst cautioned that staking growth alone should not be viewed as a catalyst for an immediate price recovery.

Corporate accumulation has also continued despite Ethereum's recent underperformance.

As previously reported, SharpLink recently acquired 10,000 ETH for USD 16.1 million (approx. $23.5 million), increasing its treasury to 886,725 ETH as Ethereum headed toward a rare third consecutive quarterly loss.

BitMine has also expanded its holdings after purchasing 27,084 ETH in one week, taking its treasury above 5.7 million ETH, or roughly 4.7% of the circulating supply.

All of this has helped support Ethereum's return above $1,600, although the durability of the move will depend on whether buyers can maintain this momentum.

Can ETH hold above $1,600?

Technical indicators suggest Ethereum has improved its short-term structure, although several resistance levels still stand between the current price and a stronger trend reversal.

The daily chart shows ETH rebounding from June's low near $1,510 after buyers repeatedly defended that area.

ETH/USD 1-day price chart. Source: TradingView.

ETH has recovered above the 23.6% Fibonacci retracement level around $1,590 and is now trading close to the 38.2% retracement near $1,680. 

A sustained move above that zone could expose the 50% retracement around $1,720, followed by the 61.8% level near $1,776.

Volume profile data also identifies a notable supply zone around the $1,950-$2,000 region, suggesting sellers could become more active if Ethereum extends its recovery toward that area.

On the 4-hour chart, ETH is trading above the middle Bollinger Band, which sits near $1,594, while the upper band around $1,637 represents the first immediate resistance. 

ETH/USD 4-hour price chart. Source: TradingView.

A decisive break above that level could strengthen momentum toward the $1,680-$1,720 area identified on the daily timeframe.

Momentum indicators also show improving conditions without signalling an overheated market. 

The 4-hour Relative Strength Index has climbed to about 55, remaining above its moving average while staying below the overbought threshold of 70. 

The reading suggests buyers currently hold a modest advantage, although additional buying volume would likely be needed to sustain a move beyond recent highs.

On a higher timeframe, crypto analyst Ali Charts argued that Ethereum is approaching a key structural support level.

According to the analyst, ETH is approaching the lower boundary of a multi-year ascending channel near $1,100, a level that has historically acted as structural support. 

Holding above that area could eventually clear the path toward the channel's midpoint around $3,000, while the upper boundary sits near $5,000.

However, those targets remain part of the long-term outlook, and for now, Ethereum must first maintain its position above $1,600 and overcome resistance around $1,640, followed by the $1,680-$1,720 region identified on the daily chart, before traders can make a stronger case for a sustained recovery.