Ethereum ETH/USD is trading at $2,487.02, losing 1.11% in a day. It has gained 0.01% this week, and 4.71% this month. The price's poor momentum follows a $15.5 million Ethereum transfer from a prominent whale to Binance BNB/USD, which raised concerns about potential sell pressure.
Over the past three days, blockchain transactions tracked by AmberCN revealed that one address deposited 6,200 ETH, equivalent to nearly $15.55 million, into Binance. The whale had previously profited from a successful PEPE investment and continues to hold around 36,700 ETH in DeFi protocols. The deposit has increased fears of significant liquidations.
Don't Miss: Ethereum is forming a bull flag on the daily chart. The price action has been stuck between $2,380 and $2,800 since the early days of May, consistently testing the upper band. Chart data indicates both the 21-day EMA and 50-day SMA are offering some support.
Ethereum has been unable to hold above the mid-flag level. Unless the resistance at $2,800 is turned to support, no rally is likely to be sustained. Ethereum’s RSI reading is below the neutral 50 marker at 39.76, which shows weak short-term momentum.
The MACD also indicates a bearish crossover, as current bearish selling pressure is overpowering buying interest. It indicates that there could be a downward action unless the bulls can break resistance convincingly in the near term. Active Ethereum network addresses reached an all-time high this week at 17.4 million, led by expansion in Layer 2 ecosystems.
Layer 2 chain interactions increased by 18.43%, which indicates a dramatic surge in user activity. Net ETH inflows on centralized exchanges continue to be negative. Exchange balances fell by 1.59%, which is a sign that investors are withdrawing coins from trading platforms and moving them into cold storage or staking contracts.
Reduced supply on exchanges often decreases sell-side pressure and can enhance price action when demand returns. Volatility has fallen sharply from 80.25% to 47.3%, which indicates that Ethereum may be in a phase of compression. The Binance long/short ratio is at 1.84, where 64.82% of traders are betting on an upward movement.
The bullish concentration introduces the risk of a long squeeze if the $2,800 resistance continues to hold. The formation of an inverse head and shoulders pattern on ETH’s daily chart has been noticed. If the pattern is confirmed by a breakout above $2,824, it can be a signal of a bigger bullish trend, which may take Ethereum beyond $3,000.
If the breakout fails and the pattern breaks down, though, Ethereum can face extended sideways action or a reversal. Ethereum is sitting just below a critical resistance level, and on-chain signals are showing increasing institutional and retail participation. Although some of the metrics do show a bullish scenario, there's still high uncertainty due to the recent whale transfer and the lack of breakout confirmation.
As Ethereum’s price keeps shifting between resistance and support, short-term direction will depend on how the market reacts to these conflicting signals in the coming days. More Opportunities: Image: Shutterstock
