Ethereum Faces Bearish Pressure Despite Bullish Indicators

Ethereum is currently experiencing a period of technical analysis that suggests a potential rally to $3,000 in the coming weeks. This bullish outlook is driven by several emerging technical patterns, including a cup-and-handle formation that has developed above its 200-day exponential moving average (EMA). This pattern is often seen as a strong indicator of a potential upward price movement.

The cup-and-handle pattern is a bullish continuation pattern that forms after a price decline followed by a rally. The pattern consists of a "cup" that forms as the price declines and then rallies, followed by a "handle" that forms as the price consolidates before breaking out to the upside. In Ethereum's case, the price has been trading around $2,509, and the formation of this pattern suggests that a breakout above $3,000 is possible.

In addition to the cup-and-handle pattern, there are other bullish technical indicators that support the potential for a rally to $3,000. For example, the price of Ethereum has been trading above a critical technical support level, which could determine its near-term direction. This support level has been holding, and if it continues to do so, it could provide a solid foundation for a rally to $3,000.

However, it is important to note that there are also bearish indicators that could potentially derail the rally. For instance, the price of Ethereum has been struggling to break above key resistance levels, and recent momentum suggests waning buyer strength. The price has moved back into the $2,460–$2,500 demand region, a critical area where bulls have previously defended short-term downside. However, recent momentum suggests waning buyer strength.

Multiple breakdown attempts since May 30 have kept ETH capped under the $2,530–$2,550 intraday resistance zone, with trendline pressure pushing price into tighter ranges. The chart structure now resembles a descending triangle, a typically bearish continuation formation that could gain traction if the $2,470 support level gives way.

Momentum signals further confirm the cautious tone. On the 30-minute chart, RSI has dropped back near 33.29, suggesting Ethereum price volatility may expand if downside levels break. MACD histogram bars have turned red again, and the signal line crossover remains bearish, implying ongoing short-term selling pressure. Meanwhile, the Stochastic RSI is oscillating in the lower bands, with a fresh bearish crossover below 20 on June 2—signaling that the asset is struggling to recover despite oversold conditions. If this pattern persists, ETH could continue to drift lower toward the $2,450 support zone, where historical bids have shown up in previous weeks.

The Ichimoku Cloud on the 30-minute timeframe reinforces the bearish narrative. Price remains beneath the cloud with the baseline and conversion lines aligned above spot levels, reflecting strong resistance near $2,510–$2,520. This confluence has repeatedly repelled upward attempts over the past three sessions. Adding to this, the 4-hour chart shows Ethereum price is currently pinned below all major exponential moving averages, including the 20, 50, and 100 EMA clusters near $2,525–$2,538. These dynamic resistance bands continue to weigh on any bounce attempts, keeping sentiment in a defensive stance for now.

Bollinger Bands also show a gradual contraction, with price hugging the lower band—a signal that volatility could increase sharply, potentially toward the lower support region near $2,420 if bears gain momentum. Zooming out to the weekly chart, the broader structure suggests that ETH remains trapped between the 0.382 and 0.5 Fibonacci levels, spanning $2,425–$2,745. This mid-Fibonacci compression is typically a battleground zone, and the inability to break through $2,745 (0.5 Fib) over the past few weeks signals broader consolidation.

A decisive breakout above the $2,580–$2,600 ceiling is needed to validate any renewed bullish breakout attempt. Until then, Ethereum price update remains range-bound, with a bearish tilt due to the descending triangle pressure and weakening momentum signals. The question now is: Why is the Ethereum price going down today? The answer lies in the repeated rejection from dynamic resistance levels and fading momentum on multiple timeframes. Unless buyers can reclaim $2,530 with strong volume, the risk of further downside remains elevated.

In the near term, watch the $2,470–$2,450 zone closely. If this floor fails, ETH may quickly slide toward the $2,420–$2,400 support band. On the flip side, a bounce from current levels and a break above $2,530 could lead to a short-term relief push toward $2,580 and eventually $2,600. The Ethereum price today is struggling to maintain bullish structure as multiple rejections from resistance zones continue to weigh on price. Until a clean break above $2,580 occurs, bears remain in control. For now, eyes remain on the $2,450–$2,470 zone, which may dictate the next major directional move in the days ahead.

On the derivatives front, open interest in ETH futures has surged to $35.67 billion, nearing its all-time high and well above the $19.6 billion recorded on April 3. Further, its long/short ratio on Binance was 1.8 at press time, indicating a clear bullish bias among traders. Meanwhile, its funding rates have also remained positive for over a month.

ETH’s bullish setup is further reinforced by strong institutional inflows and on-chain trends suggesting reduced selling pressure. According to CoinShares data, ETH-based investment products attracted $321 million in inflows last week, their highest weekly figure since December 2024. That momentum continued in U.S. markets, with spot Ether ETFs recording four straight weeks of positive inflows totaling over $653.9 million.

At the same time, the ETH supply on centralized exchanges has dropped to its lowest level in over seven years. This steady decline in exchange balances suggests increased self-custody, typically a sign that investors are positioning for long-term gains rather than short-term selling. Meanwhile, several major corporations have also shown interest in the flagship altcoin, with notable recent purchases from firms such as BTCS and Fidelity, both of which have significantly increased their ETH holdings.

On the 4-hour ETH/USDT chart, ETH price remains above the rising trendline of a multi-week ascending triangle and is holding firm above the 50-period Simple Moving Average, a sign of sustained bullish momentum. The Aroon Up indicator is currently at 92.87%, while the Aroon Down is at 28.57%, showing that the uptrend is clearly dominating. To top it off, the MACD has made a bullish crossover, further confirming upward pressure. If this momentum continues, ETH could first test the $2,713 level, which lines up with the 50% Fibonacci retracement zone. A breakout above that could pave the way toward $3,000, Ethereum’s 61.8% retracement level, which would mark a roughly 15% jump from its current price. On the flip side, if ETH dips below $2,500, it might invalidate the current bullish setup. In that case, we could see a pullback toward the $2,377 level, which coincides with the 200-day SMA and may act as a key support zone.