- After struggling to find a rhythm above $2,700, Ethereum price is likely to break below the $2,500 support as buyers tame their appetite.
Ethereum price has gone down marginally following Bitcoin’s cue after the crypto market bellwether eased down from its newly-hit all-time highs of $112k. ETH coin hit three-month highs of $2,734 earlier on Friday, but gave up some gains to trade at $2,619 at the time of writing. Nonetheless, there remains a bullish undercurrent, with the coin having gained 50% in the last month and 3% in the last week.
The recent market sentiment makes a valid case for Ethereum price to hit the psychological $3,000 mark in June, but much will depend on the outcome of the GENIUS Bill which seeks to entrench a legal framework for the regulation of stablecoins in the United States. The bill is currently in the US Senate and its passage could stimulate a wider mainstream adoption of cryptocurrencies. In addition, multiple US states have lined up legislations for establishment of cryptocurrency reserves.
ETH Price Will Struggle to Breach $2,700
Meanwhile, Ethereum price will likely struggle to break above $2,700 in the near-term going by its current momentum. The coin’s 24-hour trading volume was down by 30% as of this writing, according to data aggregation site, CoinMarketCap. That was a disproportionately big drop relative to the marginal price decline during that time frame, and potentially points to a weakening incentive to keep buying the coin.
In addition, the value of open interest contracts declined by 3.40% to $14.1 billion during that time window, affirming the downside view. Furthermore, Ethereum chain’s DeFi TVL went down by 3.435 in the last 24 hours according to DeFiLlama, signaling reduced utility for ETH.
Ethereum Price Prediction
The momentum on ETH price favours the sellers with resistance at the $2,600 pivot mark. The coin will likely find initial support at $2,490. However, an extended control by the sellers will break below that level and potentially send the price lower to test $2,400.
On the other hand, going above $2,600 will signal the onset of an upside trajectory, with the first resistance likely to be at $2,660. The downside narrative will be invalid above that level. In addition, a stronger upward momentum could take the price higher to test $2,736.
