TLDR
Ethereum dropped 3.05% to $2,476 after being rejected at the $2,700 level two days ago
Spot market data shows 113.1K ETH sold versus only 90K ETH bought in the past day
Whale activity turned negative with large holders selling 188.6K ETH in one day
The $2,800 level presents major resistance due to cluster of investor cost basis levels
Technical indicators show bearish momentum with tightening Bollinger Bands and MACD crossover
Ethereum has pulled back from recent highs after facing strong rejection at the $2,700 price level. The cryptocurrency now trades at $2,476, marking a decline of 3.05% over the past 24 hours.
The selloff began two days ago when ETH hit a low of $2,463 following the rejection. This retreat comes after a strong rally that saw Ethereum rise more than 40% in the past month, helping it reclaim the $2,500 mark after dropping toward $1,800.
Market data reveals intense selling pressure across both retail and institutional investors. The 14-day moving average of the Taker Buy-Sell Ratio has dropped sharply, indicating aggressive sell orders are overpowering buy orders.
Whale activity has turned decidedly bearish. IntoTheBlock’s Large Holder Netflow metric flipped negative to -12.7K ETH, showing that large holders sold over 188.6K ETH in a single day.
Spot market activity confirms the selling dominance. Data shows 113.1K ETH was sold compared to only 90K ETH bought, creating a negative delta of 22.53K over the past day.
Resistance at $2,800 Level
According to Glassnode analysis, the $2,800 level presents a critical resistance zone. A cluster of investor cost basis levels exists around this price point, meaning many holders who bought at that level may look to exit at break-even.
There is a notable cluster of investor cost basis levels around $2,800 for $ETH. As price approaches this zone, sell-side pressure may increase as many previously underwater holders may look to de-risk near breakeven. pic.twitter.com/ukn2s7cOJo
— glassnode (@glassnode) May 24, 2025
These investors have been underwater for months and could add substantial sell-side pressure as ETH approaches the $2,800 zone. This dynamic creates a natural ceiling for price advancement.
The futures market reflects growing caution among traders. Santiment data shows Ethereum’s Taker Buy-Sell Ratio falling sharply, with the derivatives market being taken over by sellers.
Technical Picture Shows Mixed Signals
ETH continues trading above key short-term and mid-term moving averages on the daily chart. The cryptocurrency remains above both the 50-day and 100-day moving averages, suggesting the longer-term trend stays healthy.
However, cracks are appearing in the technical structure. The Bollinger Bands have begun tightening after strong expansion earlier this month, indicating volatility may be easing.
Ethereum currently trades near the midline of the Bollinger Band, showing market indecision. The Relative Strength Index holds at 63.9 in bullish territory but is no longer overbought.
The Moving Average Convergence Divergence has started flattening and recently showed a bearish crossover. This could signal early warning of waning momentum.
Two scenarios could play out from current levels. If the $2,800 resistance breaks convincingly, ETH could move quickly toward $3,000 and beyond.
The SEC decision on Ethereum ETF staking due by June 1 could provide institutional demand through yield-bearing ETFs as a powerful catalyst.
Alternatively, if selling pressure builds around $2,800 from futures traders and break-even sellers, Ethereum might face a healthy correction back to $2,200 support before any new rally.
The $2,200 level represents crucial support that bulls must defend to prevent a drop below $2,000. Current bearish momentum increases the risk of further price declines if selling pressure continues.
Be the first to comment