Key Takeaways
- ETH has failed multiple times to break resistance around $2,820, casting doubt on its ability to reach $3,000.
- Data shows a shift in sentiment after outflows supported a bullish case, but inflows spiked to 93,484 ETH.
- The price structure remains fragile, and momentum is cautious, suggesting that ETH bulls need a solid catalyst.
Ethereum (ETH) price appears to be fighting a losing battle as it attempts to reach a new yearly high. ETH has been consolidating between $2,359 and $2,667 for weeks while hinting at a breakout toward the $3,000 psychological zone.
But after several failed attempts to break past key resistance levels, the cryptocurrency may be ready to accept defeat.
Ethereum Flashes Warning Signs
On the daily chart, ETH’s price has formed a bull flag. Not long ago, this bull flag was accompanied by positive readings from several indicators.
However, that is not the case today as key technical signals seem to support a bearish move. For instance, the Awesome Oscillator (AO) reading, despite holding on to the positive region, has flashed red histogram bars.
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This consistent wave of red bars suggests that the bullish momentum around ETH is becoming weak. As such, Ethereum’s price is at risk of dropping below the flag formation’s lower trendline.
If this is the case, ETH’s next area of interest could be around $2,206. However, this will only occur if ETH fails to break through the upper trendline and flirts with the resistance at $2,820.
Bulls Falter as Inflows Spike
Meanwhile, like the technical outlook,on-chain data from Glassnode reinforces CCN’s bullish-to-cautious narrative.
Specifically, CCN analyzed Ethereum’s netflow volume — a metric that tracks the movement of ETH in and out of centralized exchanges.
Generally, higher outflows (red bars) suggest accumulation and a bullish sentiment, while dominant inflows (green bars) imply increased selling pressure.
Between May 30 and June 4, ETH saw significant outflows, supporting the case for a potential bullish breakout.
However, this trend changed on June 6, when inflows spiked to 93,484 ETH — roughly $230 million at current market prices. Such a rise in exchange deposits suggests traders may prepare to take profits or exit positions.
If this. trend continues, it could undermine bullish momentum and place Ethereum’s price at risk of a near-term decline.
ETH Price Analysis: Bearish
On the 4-hour chart, ETH’s price also presented a similar structure. The Moving Average Convergence Divergence (MACD) shows that the cryptocurrency has formed a bearish crossover.
Likewise, the red line of the Supertrend is above the current market value. Should this trend remain the same, Ethereum’s price will likely break below the underlying support at $2,280.
If that happens, it will likely decline below the $2,000 psychological zone. However, if ETH retests the resistance at $2,428, this prediction might change to bullish.
In that scenario, the cryptocurrency might climb to. $2,738. In a highly bullish case, it could rise toward $3,000.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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