Ethereum Drops 3.05% to $2,476 After $2,700 Resistance

Ethereum (ETH) experienced a notable decline, dropping 3.05% to $2,476 following a rejection at the $2,700 price level two days prior. This retreat marks a significant shift in market sentiment after a strong rally that saw Ethereum rise more than 40% in the past month, reclaiming the $2,500 mark after previously dropping toward $1,800.

The selloff began when ETH hit a low of $2,463 after facing strong resistance at $2,700. Market data indicates intense selling pressure from both retail and institutional investors. The 14-day moving average of the Taker Buy-Sell Ratio has dropped sharply, suggesting that aggressive sell orders are overwhelming buy orders. This trend is further supported by whale activity, which has turned decidedly bearish. Large holders sold over 188.6K ETH in a single day, as indicated by IntoTheBlock’s Large Holder Netflow metric, which flipped negative to -12.7K ETH.

Spot market activity confirms the dominance of selling pressure. Data shows that 113.1K ETH was sold compared to only 90K ETH bought, creating a negative delta of 22.53K over the past day. This imbalance highlights the significant selling pressure in the market.

The $2,800 level presents a critical resistance zone due to a cluster of investor cost basis levels around this price point. Many holders who bought at this level may look to exit at break-even, adding to the sell-side pressure as ETH approaches the $2,800 zone. This dynamic creates a natural ceiling for price advancement, as these investors have been underwater for months and could add substantial sell-side pressure.

The technical picture for Ethereum shows mixed signals. ETH continues to trade above key short-term and mid-term moving averages on the daily chart, remaining above both the 50-day and 100-day moving averages. This suggests that 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 that 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 an 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.