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Ethereum Price Forecast: ETH tests key resistance amid rising exchange inflows

Ethereum price today: $2,490

  • Ethereum recorded over 117K ETH in exchange net inflows after the Trump-Musk clash.
  • Investors realized over $600 million in profits in the past two days amid rising macroeconomic pressure.
  • Ethereum found support near $2,400 and is now testing the lower boundary of a key rising wedge.

Ethereum (ETH) is trading just below $2,500 on Friday as investors exerted net selling pressure of 117,000 ETH across crypto exchanges following the Trump-Musk clash.

Ethereum exchange inflows rise amid macroeconomic uncertainty

Following a clash between US President Donald Trump and Tesla CEO Elon Musk over the "big beautiful bill," which led to Ethereum shedding over 7% of its value on Thursday, crypto exchanges saw net inflows of 117,000 ETH, the second-highest since April 24. The rising exchange inflows signify increased selling pressure on the top altcoin.

ETH Exchange Netflows. Source: CryptoQuant

The selling pressure saw investors realize over $600 million in profits in the past two days, with coins aged in the 90-day and 2-year brackets being mainly responsible for the distribution, according to Santiment data.

While the dust appears to be settling, bearish pressure still lingers, with ETH exchange inflows still outpacing outflows on Friday. The Ethereum options market echoes a similar switch toward risk-off moves.

"Sentiment has clearly turned more defensive: the 10D risk reversal has dropped to -7.27 (vs. +8.82 last week), and the 25D RR has flipped to -2.95 (from +2.59), indicating strong front-end demand for downside protection," wrote Crypto Finance analysts led by Tim Beer.

Additionally, Ethereum exchange-traded funds (ETFs) extended their positive flow streak on Thursday, but with a modest net inflow of $11.26 million, aligning with bearish market signs.

Meanwhile, uncertainty in macroeconomic factors still lingers over the cryptocurrency market, as the 10-year Treasury yield rose back above 4.5% on Friday. The rise follows the US adding just 139,000 jobs in May, with the unemployment rate holding steady at 4.2%.

"While payrolls rose by 139K (establishment survey), the number of people employed (the more accurate household survey) tumbled by 696K to 163.273 million from 163.969 million," analysts at ZeroHedge noted.

Ethereum Price Forecast: ETH finds short-term support at $2,400, tests wedge's lower boundary

Ethereum experienced $46.74 million in futures liquidations on Friday, according to data from Coinglass. The total amount of long and short liquidations is $25.06 million and $21.68 million, respectively.

ETH declined over 7% on Thursday and moved below the lower boundary of a rising wedge pattern. It bounced off $2,400 and is rising again to test the wedge's lower boundary and $2,530 key level. A rejection at this level could send ETH back toward $2,400. If the $2,400 support fails, ETH could extend its decline toward the key range between $2,260 and $2,110.

ETH/USDT daily chart

On the upside, ETH could retest the critical resistance range between $2,750 and $2,850 if it clears the wedge's lower boundary resistance.

The Relative Strength Index (RSI) has moved above its neutral level again after a slight decline below it on Thursday. Meanwhile, the Stochastic Oscillator (Stoch) has recovered from oversold territory, indicating a weakening bearish momentum.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi

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