Woofun AI reports that Ethereum has decisively broken an 11-month downtrend against Bitcoin, positioning the asset for a potential rally toward the $2,000 milestone as technical structures realign.

The immediate price action reflects a surge in buying pressure, propelling ETH from approximately $1,800 to nearly $1,945 within a single trading session. This momentum was significantly amplified by a broader resurgence in traditional financial markets, which bolstered investor confidence across digital assets. On July 21, U.S. equity markets posted notable gains, with the Nasdaq Composite rising 1.3% and the S&P 500 adding 0.9%. Technology stocks led this charge, as Micron jumped more than 12% and Nvidia finished higher, driving a stronger risk appetite that spilled over into cryptocurrency valuations. Following a low on July 21, ETH gained roughly 6% and traded near $1,929 during the latest session, underscoring the correlation between equity strength and crypto performance.

Institutional demand provided a structural underpinning for this recovery, evidenced by sustained capital flows into exchange-traded funds. Spot Bitcoin ETFs recorded $203 million in net inflows on July 21 (ET), marking the sixth consecutive day of positive net flows. Simultaneously, Spot Ethereum ETFs attracted $37.471 million in net inflows, extending their inflow streak to three days.

Woofun AI data shows that BlackRock’s ETHA accounted for the majority of this Ethereum demand, recording $52.7 million in fresh inflows, while Fidelity’s FETH posted outflows, though overall investor interest remained positive. This divergence highlights the concentration of institutional capital in specific vehicles, yet the aggregate trend indicates robust demand for regulated Ethereum exposure.

From a technical perspective, the ETH/USD structure continues to improve, characterized by a well-defined ascending channel that has been in place since Ethereum formed a low near $1,514 in late June. The 20-day simple moving average currently sits around $1,828, serving as a reliable support level throughout the recovery phase. Holding above this moving average keeps buyers firmly in control of the narrative, preventing deeper retracements and validating the bullish trajectory. The integrity of this channel suggests that short-term volatility is being absorbed by sustained accumulation, rather than speculative spikes.

Relative strength against Bitcoin has also shifted, with analyst Ted Pillows noting that ETH/BTC has broken its 11-month downtrend, potentially marking the beginning of stronger relative performance. MikybullCrypto observed that Ethereum reclaimed the weekly bull market support band against Bitcoin, a critical technical threshold. Daan Crypto Trades added that a sustained move above 0.03 BTC would confirm the breakout, identifying 0.032 and 0.034 BTC as the next resistance targets. Currently, ETH/BTC trades below this confirmation level, but the proximity to these zones suggests imminent volatility. Support remains equally vital, with Ted Pillows highlighting the $1,870 to $1,900 region as the key defensive zone.

The path forward hinges on whether buyers can maintain control above these support levels. Holding above the $1,870 to $1,900 range could strengthen the case for a rally beyond $2,000, fulfilling the long-awaited milestone.

However, losing support near $1,859 could expose Ethereum to further declines toward $1,828 and eventually $1,785, invalidating the bullish structure. Current momentum favors buyers, supported by strong ETF inflows, improving technical signals, and healthier market sentiment. If nearby resistance is cleared, the move above $2,000 may arrive sooner than many expected, cementing Ethereum’s recovery phase.