AI: "Ethereum rebound possible on June 1"...Next resistance level is $2,500

▲ Ethereum (ETH)/ChatGPT Generated Image ©

As Ethereum holds above the $2,000 defense line, artificial intelligence (AI) has put weight on the possibility of a short-term rebound. However, as outflows from Ethereum spot ETFs and weakened investor sentiment continue, market caution is also simultaneously growing.

According to crypto media outlet Finbold on May 30 (local time), OpenAI's ChatGPT-based AI model predicted that Ethereum (ETH) could rebound to around $2,140 on June 1. This forecast was presented on the premise that Bitcoin avoids further sharp declines and overall market sentiment remains stable. Currently, Ethereum is trading around $2,014 after failing to break the $2,100 resistance, and the market is watching the $1,900-$1,950 range as a key support level.

The media outlet explained that this forecast is the result of comprehensively reflecting technical indicators, market momentum, and macroeconomic conditions. Currently, the Relative Strength Index (RSI) is showing a trend between neutral and bearish zones, and trading volume has also slowed, indicating weakened buying pressure. However, it is reported that some large investors have been steadily accumulating Ethereum during the recent correction period.

An analysis also emerged that recovering the $2,300-$2,500 range is crucial for Ethereum to return to a full-fledged uptrend. Crypto analyst Ali Martinez warned that if Ethereum closes below $1,850 on the weekly chart, downward pressure could rapidly intensify. According to technical analysis, the first major downside target is $1,560, and if the bearish trend deepens, there's a possibility of it falling to $1,070, the bottom of the long-term channel.

Market instability was also evident in the fund flows of Ethereum spot ETFs. According to the media outlet, US Ethereum spot ETFs recorded a net outflow of approximately $216 million over the past 7 trading days, continuing a trend of capital outflow for over 10 trading days. Notably, on May 28 alone, $121.4 million flowed out, marking the largest single-day outflow, with approximately $80 million of that attributed to BlackRock's ETHA fund. Previously, on May 27 and 26, outflows of $67.1 million and $35.1 million occurred, respectively.

The media analyzed that the recent rise in US Treasury yields, the strong dollar, and profit-taking around the $2,000 mark are pressuring Ethereum's investor sentiment. Simultaneously, it was reported that some funds are moving to alternative cryptocurrencies such as Solana and XRP (Ripple). However, Ethereum spot ETFs have reportedly maintained a net inflow status on a cumulative basis since their launch.

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