ETH/USD is currently trading around $1,837, inside a key liquidity pool between $1,831.62 and $1,841.52.

The zone connects the high of the trading week beginning 05 July 2026 with the low of the trading week beginning 19 July 2026.

I am already short from this area, targeting $1,710.95, the low of the 05 July trading week.

Price is also developing within a bearish parallel channel. The next confirmation I am watching is a full 4H OHLC candle closing below the channel's support. That would strengthen the case that the current move is developing into bearish continuation rather than simply a reaction from the liquidity zone.

Invalidation: $1,878.65
Target: $1,710.95

Fundamental backdrop

The broader Ethereum backdrop is mixed.

Institutional demand has remained an important source of support, particularly through U.S. spot ETH ETF flows. At the same time, lower Ethereum network fees have reduced ETH burn, weakening one of the mechanisms that can create deflationary pressure on the supply.

That means the fundamental picture does not independently establish a bearish thesis.

For this setup, price structure remains the primary driver.

If ETH closes below the channel, the technical picture would align with the short already in progress.

The trade is open. The confirmation is still developing.

put together by : Pako Phutietsile as @currencynerd