- Ethereum has dropped below $2,500 amid strong selling pressure and bearish technical signals, with potential further declines to the $2,110 range.
- Despite this, institutional interest remains strong, with $700 million in recent ETF inflows helping to stabilize the price.
Ethereum has dropped below the critical $2,500 level, facing mounting pressure even as institutional investors continue to pour millions into the asset. Over the past 24 hours, ETH has declined by more than 6.5%, raising alarm bells among traders and analysts.
Ethereum Bearish Technicals Signal Further Weakness
Ethereum’s technical outlook suggests more downside could be ahead. After being rejected at its 200-day Simple Moving Average (SMA), the price fell beneath a rising wedge pattern, hinting at a potential decline toward the $2,260 to $2,110 range. The $2,500, $2,540, and $2,600 levels now stand as key resistance, while support is seen near $2,380 and $2,320.
Indicators such as the MACD are gaining strength in negative territory, and the RSI has dropped below 50, both pointing to bearish momentum. Although the Stochastic Oscillator suggests ETH is in oversold territory, a quick rebound appears uncertain unless sentiment shifts.
Network Growth Collides with Competitive Pressure
On-chain data presents a mixed picture. Ethereum has regained its dominance in stablecoin transactions, with over $11 trillion in volume across Layer 1 and Layer 2 platforms in 2025. Lower fees in April—dropping by over 92%—strengthened the network’s ETH burn mechanism and limited inflation. However, fees have since risen 150% monthly, dampening user activity.
Meanwhile, total value locked (TVL) has decreased by 17% to 25.1 million ETH. Major DeFi platforms like Sky and Curve Finance have reported significant outflows, underscoring a loss of confidence in core protocols.
Ethereum is also feeling the heat from rivals like solana and BNB Chain. Uniswap, Ethereum’s top DEX, is holding strong but faces pressure as new dApps opt to build on alternative chains, threatening Ethereum’s long-term market share.
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Ethereum Institutions Offer a Glimmer of Hope
Despite the market’s challenges, institutional demand remains robust. Between May 22 and June 4, U.S.-based spot Ethereum ETFs recorded $700 million in net inflows, with a 13-day streak of positive inflows peaking at nearly $57 million on June 5.
Still, futures data shows cautious sentiment. The Ether futures premium dropped from 6% to 5% week-on-week, reflecting limited confidence among leveraged traders.
Outlook: Recovery Hinges on Reclaiming Key Levels
For ETH to regain bullish traction, it must decisively move above the $2,750 to $2,850 zone and reclaim the 200-day SMA. Failure to hold current supports could open the door to further declines near $2,110.
As Ethereum balances institutional interest against technical weakness and rising competition, the path forward remains uncertain.
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