Ethereum (ETH) has staged a significant recovery, reclaiming the $2,000 psychological level after a volatile sell-off that briefly dragged its price down to $1,742, its lowest point since May 2025. The bounce represents a roughly 10% gain from the session low, with ETH currently trading near $1,924.
The rebound coincides with a dramatic shift in capital flows. Spot inflows for Ethereum flipped positive at $224.27 million, marking the largest single-day inflow in months according to Coinglass data. This surge in institutional buying interest provided a key catalyst for the price recovery.
However, the positive flow data is juxtaposed against notable insider selling activity. Ethereum co-founder Vitalik Buterin reportedly sold $7 million worth of ETH. Concurrently, the Trump-backed entity WLFI dumped $5 million in Bitcoin, sparking market backlash and raising questions about whether "smart money" believes the market bottom is in.
The recovery followed a massive liquidation event across crypto derivatives. Total liquidations over 24 hours approached $2 billion, with Ethereum alone accounting for over $418 million in wiped-out positions. Roughly $287 million of that came from long positions, indicating that excessive leverage was flushed from the system during the downturn.
Despite the daily gains, Ethereum remains under significant weekly pressure, still down approximately 26% over the past seven days. Its market capitalization stands near $243 billion, with 24-hour trading volume climbing above $72 billion, reflecting elevated repositioning by investors.
A key bullish signal emerged from on-chain metrics. Ethereum recently recorded a new all-time high in active addresses, with the 30-day moving average rising to around 693,000. Historically, expanding network activity during price weakness has often preceded stronger medium-term recoveries.
From a technical perspective, momentum indicators are improving. Ethereum's RSI has rebounded toward the high-50s, moving away from oversold conditions. The immediate recovery target is to reclaim the $2,394 level, while a close below the recent $1,742 low could open the door for a move down toward the $1,300 support zone. Analysts note that ETH's ability to hold above $2,000 now depends heavily on Bitcoin maintaining strength near the $70,000 level.
