ETH dropped 0.98% in 15 minutes: technical resistance level test failure triggers technical selling pressure

2026-07-07 18:45-19:00 UTC, ETH dropped sharply from $1,805.09 to $1,785.84 in 15 minutes, with a return of -0.98% and an amplitude of 1.07%. The price failed to break through the key technical resistance zone of $1,803-$1,804, triggering short-term technical selling pressure and notably heightened market volatility.

The main driver of this anomaly was concentrated position-closing behavior triggered by a failed test of the technical resistance level. When the price approached the psychological $1,800 mark and failed to hold above the 50-day EMA resistance of $1,804.30, short-term traders opted to close positions or short, creating selling pressure.

Meanwhile, market structure factors further amplified the volatility. First, ETH futures maintained a positive funding rate (+0.40%, ~55.2% annualized), with long positions continuously paying costs. Against the backdrop of high open interest (16 million ETH futures contracts, nominal value of ~$34 billion), the price decline triggered leveraged long position liquidations. Second, exchange ETH reserves fell to a historic low of 14.5 million ETH, with relatively thin order book depth ($475.5M), making it difficult to absorb selling pressure. The lingering aftermath of the Ethereum Foundation's June layoff of 54 employees and a 40% budget cut also suppressed market sentiment to some extent.

In the near term, focus on the validity of the key support level at $1,770; if lost, selling pressure may intensify. On-chain fund flows, changes in futures open interest, and macro news will be important indicators to watch. Current volatility risk is high, and it is recommended to closely monitor technical breakout levels.