Ethereum [ETH] has been making headlines recently as whale activity intensifies despite a structural breakdown in its price action. With a notable $12.6 million 5x long position entering the market, it is clear that some big players remain bullish on ETH, even as it lost support at $1,800 and traded at $1,642.60 at press time. Traders are now eyeing $1,600 as the next crucial support zone, with the possibility of a drop towards $1,400 if sellers gain control.
The delay in the SEC’s decision regarding Grayscale’s proposal to include Ethereum staking rewards in ETFs has added to the uncertainty surrounding Ethereum’s market sentiment. The delay until 1 June has left room for speculation, with potential transformative impacts if approved, such as higher staking yields, increased institutional flows, and strengthened long-term investor confidence. Ethereum’s broader narrative is also gaining strength, with discussions around its potential role in solving AI-related issues and offering a verifiable and ethical foundation for AI systems through its smart contracts.
On the daily chart, Ethereum is showing signs of potential recovery despite being stuck in a downtrend. It is currently trading between its 9-day and 21-day moving averages, with resistance near $1,732 and support at $1,587.41. The Stochastic RSI is signaling overbought conditions, suggesting that bullish momentum may be building. Traders are advised to remain alert for a breakout or breakdown, especially with ETF news and macro trends in play.
The next few days will be critical for Ethereum as it finds itself at a technical and narrative crossroads. Whales continue to bet big on ETH, while ETF speculation adds to the uncertainty in the market. The price structure has broken down, and $1,600 is being retested, making it a crucial support zone. If bulls defend current levels and catalysts align, Ethereum may soon ignite a powerful rally, presenting an opportunity for a potential bullish trend to emerge.
