Ethereum’s Rare Monthly Buy Signal Sparks Talk of a Run Toward $2,000

Ethereum has flashed a rare bullish signal on its monthly chart for the first time since March 2025, reviving hopes of a sustained rally toward the $2,000 mark, according to AMBCrypto. The move comes as ETH bounced from a double-bottom pattern near $1,565 and reclaimed the $1,700 level, though analysts caution the recovery still needs to clear key resistance before a broader uptrend can be confirmed.

A signal with a strong track record

The trigger in question is the monthly TD Sequential indicator, a tool traders use to spot potential turning points in long-term price trends. AMBCrypto noted that previous monthly buy signals on Ethereum preceded rallies of 235% in 2022 and 182% in 2025, giving the latest print added weight among market watchers.

Even so, the outlet stressed that historical performance is not a guarantee, since broader market conditions differ across cycles. The indicator suggests Ethereum may be approaching another macro turning point, but it does not by itself confirm a new bull market is underway.

Leverage climbs as traders lean bullish

Derivatives data cited by AMBCrypto pointed to renewed confidence among traders. Open Interest on Ethereum contracts climbed to $11.16 billion, a 13.15% daily increase, while funding rates surged 113.86% to 0.0129, according to figures sourced from CryptoQuant.

The rising funding rate indicates long traders were paying a premium to hold their positions, reinforcing the bullish tilt across perpetual futures markets. At the same time, AMBCrypto warned that expanding leverage also raises the risk of liquidations if Ethereum fails to hold its recent gains, and that derivatives activity alone does not validate the monthly signal — it merely shows speculative demand has returned.

Price structure and resistance ahead

On the price chart, Ethereum rebounded from a well-defined double-bottom near $1,565 after buyers repeatedly defended that level, according to TradingView data referenced in the report. The bounce carried ETH above $1,700, with the next technical barrier seen around $1,800 and $2,000 identified as the major resistance if buying pressure continues.

The Relative Strength Index also climbed to 51.65, moving back above the neutral zone after rebounding from deeply oversold territory — a sign of improving buying strength rather than weakening demand. Still, AMBCrypto noted Ethereum remains below its major resistance zones, and only a decisive break above $1,800 would strengthen the case that the monthly signal aligns with a genuine trend reversal rather than another short-lived bounce.

Data from CoinGlass’s 24-hour Liquidation Heatmap showed the largest concentration of leveraged positions sitting between $1,740 and $1,750, directly above Ethereum’s current price. Markets often gravitate toward such heavily leveraged zones as liquidations generate additional trading activity, leaving room for a short-term advance before stronger resistance near $1,800.

A separate liquidity pocket was identified between $1,650 and $1,680, meaning downside volatility remains possible should buyers lose control. AMBCrypto concluded that the heatmap highlights areas of interest rather than guaranteeing direction, and that Ethereum still needs a confirmed breakout above $1,800 to fully validate the bullish case built around the rare monthly signal.

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