Ethereum Drops 2.32% as Foundation Launches Security Initiative

Ethereum's latest price was $2533.69, down 2.327% in the last 24 hours. The Ethereum Foundation has launched a new initiative called "Trillion Dollar Security" aimed at enhancing the network's security standards to meet the demands of a "civilization-scale infrastructure" capable of securing trillions of dollars in value. This initiative is designed to make Ethereum strong enough for billions of people to confidently hold over $1,000 on-chain. The effort will unfold in three phases, starting with a comprehensive assessment of Ethereum’s security across areas such as wallet user experience, smart contract tooling, and consensus protocol. The Ethereum blockchain currently secures over $70 billion as the leading ecosystem for decentralized finance, but the foundation believes further steps are required to prepare the network for wider economic integration and ultimately surpass the security guarantees provided by legacy systems.

Digital asset whales have transferred massive Ethereum holdings off centralized exchanges to other custodians. This move follows a bullish price recovery, igniting traders’ confidence in the last seven days. In the past 30 days, crypto whales have withdrawn one million Ethereum tokens from centralized exchanges. This move to other custodians shows a rising desire to hold assets for longer periods. Weekly trader data also points to a growing sentiment despite slight calls for profit taking. Lower exchange reserves strengthen demand for more inflows, especially due to Ether’s monthly struggles. Outflow from centralized exchanges can be tracked to DeFi staking protocols to earn yield or cold storage as large holders position for another rally. It should be noted that whale addresses scoop up a larger share of retail volumes during a price recovery as the latter commence profit taking.

Expert trader Ali Martinez noted that the Simple Moving Average (SMA) is above ETH price, which can signal another major uptick. On the 3-day chart, Ethereum closing above the 200-period SMA has historically triggered major bull rallies. And that level now sits at $2,700. Past cycles show that when the altcoin giant closes above the 200 Day SMA, a major recovery becomes inbound especially when coupled with macro reversal. Last month, the White House paused its country-based tariffs, cooling global trade tensions. In effect, crypto and traditional assets spiked with Bitcoin and Ethereum clinching double-digit weekly gains. A major importance of dwindling exchange ETH reserves is bulls flagging an altcoin peak after several months. Market analysts hinted at a higher altcoin dominance, marking expected institutional inflows. The approval of spot ETFs looms in the United States after months of positive regulations. These products will act as a catalyst to attract billions to the market cap.

Ethereum’s market sentiment has shifted notably as the prediction market on Polymarket now shows a 72% chance that the cryptocurrency will remain above $2,500 on May 16, 2025. This jump represents a 22% surge in trader confidence, sparked by rising optimism and increased trading activity over recent days. The change in sentiment reflects a broader trend where traders are recalibrating their outlook based on both technical indicators and market psychology. Besides the rise in probability, the market has drawn significant attention. Trading volume for this particular prediction reached $674,720, showing strong participation and conviction among speculators. Interestingly, this surge in confidence came despite Ethereum’s short-term dip, suggesting that investors may be focusing on longer-term fundamentals rather than daily fluctuations.

Ethereum has surged more than 50% since last week, reclaiming momentum after months of heavy selling pressure. ETH is showing sustained strength for the first time since late December, fueling optimism that the broader altcoin market could be next. Many analysts are calling for an altseason, and Ethereum’s breakout is seen as a potential catalyst for a larger move across altcoins that have severely underperformed in recent years. However, after such a sharp move, a period of consolidation or correction wouldn’t be unusual—and could even be healthy. According to Daan, the $2,400 level will be a key support zone to watch. He believes it makes sense for price to test this area before further continuation. Daan currently has no interest in entering long positions until some of the billions in Open Interest are flushed from the system. How Ethereum reacts around $2.4K will likely set the tone for the next phase.

If ETH sweeps $2.4K and quickly bounces, Daan expects a local range to form between $2.4K and $2.7K. However, if price loses that level decisively, the next major support lies at $2.1K. A slow bleed into that zone could signal weakness, while a quick flush might present a short-lived buying opportunity. Despite short-term risks, Daan notes that even a pullback to $2.1K would still leave ETH up roughly 20% from the prior week. In his view, the larger trading range for now is between $2.1K and $2.8K—a zone that could define Ethereum’s next major trend if bulls can hold key levels and regain momentum. For now, the rally is alive, but the next test will be critical.