- Ethereum’s $2,550 support zone could trigger either a bullish rebound or breakdown.
- Exchange reserves at historic lows suggest strong investor conviction and long-term confidence.
- Mixed technical signals and declining open interest indicate short-term trader uncertainty.
Ethereum enters June 2025 at a crucial technical and psychological level, with its current price testing the $2,550 support zone. This price action has drawn the attention of analysts and investors alike, especially as market indicators flash conflicting signals.
The broader sentiment remains cautiously optimistic, supported by declining exchange reserves and mixed but notable technical cues. As the world’s second-largest cryptocurrency by market cap, Ethereum’s next move could significantly shape the broader crypto market’s short-term direction.
Testing the $2,550 Support: A Bullish or Bearish Pivot?
Ethereum’s price sits at $2,523.45, marking a 3.73% drop over the past 24 hours. Despite this short-term dip, the $2,550 level has emerged as a critical support.
Analyst Ali Martinez points out that if Ethereum holds this level, a rebound to $2,650 could follow. This aligns with previous resistance and would indicate renewed bullish strength.
The TD Sequential indicator recently triggered a “1” buy signal on the 4-hour chart, a potential hint at a bullish reversal. This pattern has historically provided reliable signals on Ethereum’s short-term movements.
However, the bullish scenario depends heavily on Ethereum holding above $2,550. A breakdown below this level could send the price toward the next major support at $2,380. Traders are closely monitoring the next few candles for confirmation, as short-term momentum hangs in the balance.
If #Ethereum $ETH holds above $2,550, a rebound to $2,650 could follow, with the TD Sequential flashing a buy signal on the 4-hour chart. pic.twitter.com/Ec905hCL64
— Ali (@ali_charts) May 31, 2025
Exchange Reserves Point to Long-Term Confidence
TedPillows highlights another key indicator, exchange reserves. Despite Ethereum dropping 8% recently, reserves on centralized exchanges remain near historic lows at around 19.5 million ETH.
This ongoing decline down from over 30 million ETH in mid-2022 suggests strong investor conviction. Smart money appears to be moving ETH into cold storage rather than selling, indicating confidence in long-term value.
This divergence between price and reserves supports a bullish outlook. It suggests that large holders are not panicking and may be preparing for higher valuations in the coming months.
Technical Indicators Show Mixed Signals
Ethereum’s MACD indicator currently shows the blue line above the signal line, signaling bullish momentum. However, the histogram bars have begun to shrink, hinting at weakening momentum.
The RSI stands at 56.45, reflecting a neutral to slightly bullish stance. Notably, it remains far from overbought or oversold zones, providing room for a directional move.
Open Interest Declines as Traders Reassess Positions
Open interest across Ethereum contracts has fallen by 4.91% to $14.6 billion. Perpetual contracts make up the majority at $14.1 billion. Binance leads with $5.3 billion, followed by Bybit and Huobi. The decline in open interest may reflect caution or a pause in leveraged trading.
Outlook for June
Ethereum’s near-term future hinges on its ability to hold above $2,550. If successful, a rally toward $2,650 seems likely. With exchange reserves low and smart money showing restraint, sentiment remains cautiously bullish. Traders should watch the next price action closely, as it could define Ethereum’s June trajectory.
