Ethereum

Ethereum Eyes $3K as ETF Inflows Surge but Breakdown Risk Grows

7 days ago
Bitcoin Ethereum News

TLDR:

  • Ethereum holds near support as ETF inflows hit $700M, reinforcing bullish sentiment among investors.
  • Futures premiums drop to 5%, signaling weak conviction despite strong institutional demand for ETH.
  • Bullish technical patterns form, but ETH struggles to reclaim $2,700 amid rising network competition.
  • Large ETH transfers spark volatility concerns as Solana and BNB gain ground in DEX market share.

Ethereum is trading near a critical support zone as bulls aim for the $3,000 level. However, technical patterns and mixed market signals suggest that a clear breakout remains uncertain. 

The digital asset has faced recent volatility and is under close watch by traders and analysts.

Ethereum Demand Grows, but Futures Data Shows Weak Conviction

Ethereum saw 13 straight days of inflows into spot ETFs, with $56.9 million reported recently. These institutional investments helped reinforce the $2,500 support zone. 

Between May 22 and June 4, ETH-based ETFs in the U.S. brought in $700 million. According to analysts, this level of demand may limit downside pressure in the short term.

Ted, a crypto trader on X, noted that “$ETH holding range support nicely after the dump,” suggesting a possible rebound if momentum continues. 

Yet, futures markets show a different view. ETH two-month futures premiums dropped to 5% on June 5, from 6% a week earlier. Traders typically view a 5%–10% premium as neutral. 

Since late January, premiums have not exceeded 10%, which may indicate a lack of strong bullish interest. 

On the other hand, Henry, a crypto analyst, warned that ETH is in a “do or die situation” and that a breakdown could send the price lower. Market watchers suggest that until leveraged positions rise, a breakout above $3,000 may not happen.

Ethereum Technical Setups Point to Potential Rebound Amid Competition 

According to technical charts, Ethereum is forming several bullish patterns. One such setup is the cup and handle, with resistance near $2,795. This pattern aligns with the 50% Fibonacci retracement. 

A golden cross has also formed, as the 50-day and 200-day moving averages crossed. The last time this happened was in November 2024, after which ETH surged 40%.

In addition, a bullish flag pattern is developing, signaling continued consolidation before a possible rally. However, Ethereum has struggled to reclaim the $2,700 mark. 

CoinGecko data shows that ETH is priced at $2,495.69, down 3.17% in the past 24 hours. Despite a 48% gain since early May, further upside is now uncertain.

ETH price on CoinGecko

Meanwhile, competing blockchains like Solana and BNB Chain are gaining DEX market share. Ethereum’s network fees rose by 150% month-on-month, driven by higher decentralized exchange activity. 

Still, Ethereum now ranks third in DEX volumes, behind BNB and Solana. Solana’s total value locked rose 2% in 30 days, while Ethereum’s TVL dropped 17% to 25.1 million ETH.

Large On-Chain Transfers Raise Market Concerns Amid ETF Inflows

A large Ethereum transaction was recorded on June 5, valued at over $159 million. On-chain tracking service Whale Alert showed that 61,966 ETH was moved between unknown wallets. The sender address, “0x0b26C,” has made several large transfers over the past five days. The recipient, “0x35365,” had no prior record of major transactions.

Such movements often cause speculation in the market. Some view it as a sign of preparation for large trades. 

Others see it as a possible warning for price volatility. This comes at a time when ETH support remains intact, any sharp move could test the lower boundary of the current range.

Despite strong ETF flows, Ethereum’s network activity has not grown at the same pace. Decentralized apps are now choosing to build on other chains or launch independent networks. These changes may affect Ethereum’s market position in the long run. 

The post Ethereum Eyes $3K as ETF Inflows Surge but Breakdown Risk Grows appeared first on Blockonomi.

Source: https://blockonomi.com/ethereum-eyes-3k-as-etf-inflows-surge-but-breakdown-risk-grows/