Ethereum posts daily gains and a rare monthly buy signal as Q3 recovery gains steam

Ethereum rose 2.37% in the last 24 hours to about $1,748, outpacing the broader crypto market and Bitcoin. The rally was driven by a strong positive beta with overall market cap growth and capital rotating from smaller altcoins into ETH. Technical analysis highlighted a rare monthly buy signal on the TD Sequential indicator – the first such signal since March 2025 – noted by analyst Ali Martinez, who cited past instances where the signal preceded large rallies. Despite the upside, spot Ether ETFs recorded a net outflow of $358.3 million since June 2026, reflecting lingering bearish sentiment. Futures market data showed the taker‑buy‑sell ratio and open interest moving above key thresholds, suggesting short‑squeeze potential. On the ETH/BTC pair, the ratio broke above its June range, reaching 0.0275 BTC, its strongest level in weeks, indicating relative strength against Bitcoin. Binance saw a three‑year peak in Ethereum withdrawals, hinting at increased on‑chain activity. Historical data shows Q3 has averaged a 7.5% return for ETH since 2016, supporting the view that the third quarter often marks a recovery after weak first‑half performance. Together, these factors point to a tentative but notable rebound for Ethereum in mid‑2026.