to leave a comment.
▲ Ethereum (ETH)/AI-generated image ©
Ethereum (ETH) has entered a critical juncture regarding its ability to defend the $2,100 support level. Despite institutional fund outflows and the Federal Reserve's hawkish stance, the staking of 39 million ETH and anticipation of the FusaK upgrade are acting as support, drawing market attention to the possibility of a rebound in June.
According to investment media TradingNews on May 29 (local time), Ethereum rebounded approximately 1.8% during the day, trading in the $2,016-$2,100 range. However, attempts to recover $2,100 have repeatedly met resistance, and the typical downtrend of continuously lower lows and highs has persisted since the April peak near $2,500, the media analyzed. Its market capitalization is approximately $252 billion, and its circulating supply is around 120.7 million ETH.
Technically, the situation is not easy. Ethereum is currently trading below its 20-day moving average of $2,170, its 50-day moving average of $2,256, and its 200-day moving average of $2,520. The weekly Moving Average Convergence Divergence (MACD) remains in negative territory, and the Relative Strength Index (RSI) has also fallen below the neutral line across various timeframes. Particularly on the 4-hour chart, the decline in short-term moving averages continues, indicating a strengthening bearish trend.
Deteriorating institutional demand is also a burden. Ethereum spot ETFs, including BlackRock and Fidelity products, experienced approximately $67 million in outflows on May 27 alone, extending the net outflow streak to 12 consecutive trading days. Previously, April saw a net inflow of approximately $356 million, raising hopes for recovery, and May 1 recorded a single-day inflow of $101.2 million, but the recent trend has rapidly cooled again. The media diagnosed that the ETF fund outflow is weakening the core buying power in the spot market.
However, on-chain metrics are sending conflicting signals. As of late May, approximately 39 million ETH were locked in staking, reaching an all-time high, while exchange reserves fell to their lowest level since 2021. This reduction in circulating supply could act as a strong upward price pressure if demand recovers in the future, according to analysis. Additionally, the Glamsterdam hard fork scheduled for June is emerging as a key variable. This upgrade is estimated to increase Layer 1 throughput by up to three times, and the fact that past major upgrades have acted as price catalysts is also fueling market expectations.
Key price levels for the future are narrowed down to $2,080 and $2,256. If the $2,080 support level breaks, further declines to $1,980, and then to $1,850 and $1,800 could open up. Conversely, if the $2,256 level is reclaimed, an attempt to re-break $2,520, where the 200-day moving average is located, becomes possible, and a rebound scenario to $2,750 is also being discussed in the market. The media assessed that Ethereum is currently at a turning point, clashing between strong fundamentals and weak price action.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.