Ethereum concluded June with negative returns, failing to react to multiple bullish catalysts including strong ETF inflows and accumulation address activity.
Geopolitical tensions and record Ethereum shorts on CME played pivotal roles in maintaining price stagnation.
A bearish crossover emerges on Ethereum's 12-hour chart following rejection at the $2,500 resistance level.
Ethereum (ETH) dropped 3% on Tuesday, extending June's downtrend despite multiple bullish developments this month, such as substantial ETF inflows, record accumulation address purchases, and public companies launching ETH treasuries.
Why Ethereum Failed to Rally Despite Major Bullish Developments in June
According to Cryptorank, Ethereum ended June with a 1.5% decline, bringing its H1 performance to a 25% loss, despite several milestones this month.
Key June Milestones:
- ETF Inflows: U.S. spot Ethereum ETFs recorded $1.16B in net inflows, marking the second-best month since launch with only three days of outflows ($39.98M total).
- Accumulation Addresses: June saw the strongest monthly inflows to ETH accumulation addresses in history, signaling high demand (CryptoQuant data).
- Corporate Adoption: Companies like SharpLink Gaming (SBET), Bit Digital (BTBT), and BitMine (BMNR) announced ETH treasury strategies.
- Staking Growth: Total staked ETH reached a new ATH of 35.52M ETH.
- Regulatory Support: The bipartisan GENIUS Stablecoin Bill passed the U.S. Senate, boosting Ethereum’s sentiment as it dominates ~50% of the stablecoin market (DefiLlama).
Despite these catalysts, Ethereum’s price remained range-bound due to:
- Geopolitical Tensions: Israel-Iran nuclear tensions triggered a drop to $2,110, erasing bullish momentum.
- Market Reactions: ETH responded negatively to Elon Musk’s social media clash with former President Trump.
- CME Shorts: Record-high short positions on CME expanded alongside ETF inflows.
- Whale Activity: A key institution unstaked 95.3K ETH, sending 68.1K ETH to exchanges (EmberCN data).
Ethereum Price Prediction: Bearish Crossover After Rejection at $2,510
- Liquidation Data: $46.06M in ETH futures liquidated in 24 hours (Coinglass).
Technical Outlook:
- Death Cross: 50-SMA crossed below 100-SMA on the 12-hour chart, signaling weakening momentum.
Key Levels:
- Support: $2,350 (symmetrical triangle lower bound reinforced by 200-SMA); breakdown risks fall to $1,750.
- Resistance: $2,510 (rejection zone); breakout targets triangle upper bound.
- Indicators: RSI neutral, Stochastic Oscillator nearing oversold, suggesting bearish pressure.
FAQs
1. Why did Ethereum fail to rise despite ETF inflows?
Ethereum faced counteracting pressures from geopolitical risks, institutional shorts, and whale sell-offs, offsetting ETF demand.
2. What’s the significance of accumulation addresses?
They indicate long-term holding sentiment, with record inflows suggesting strong investor confidence despite price stagnation.
3. Can ETH rebound above $2,500?
A sustained close above $2,510 with rising volume could invalidate the bearish structure, but current momentum favors caution.
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Disclaimer: This content is for informational purposes only and not investment advice. Cryptocurrency trading involves risk, including potential loss of capital. Always conduct independent research.
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