Dreams are crumbling. Ethereum’s trajectory, long praised, is now dangerously faltering. While a surge towards $3,000 seemed within reach, the wind has turned. Technical indicators darken, supports give way, and the specter of a plunge into the abyss looms. Yet, at the same time, contradictory signals emerge. Ether falls, but funds flow in. A paradox that intrigues as much as it confounds.
Ethereum is navigating blindly. On Friday, the ETH price fell to $2,510, down 3%. And this is not just a simple pullback. Several rejection candles below $2,550 mark a technical breakdown. Analysts see this as a “bull trap”, a false bullish breakout that traps the optimists.
Meanwhile, moving averages are sliding towards a death cross. If the 50 SMA crosses below the 100 SMA, a drop to $1,750 becomes plausible. In the last two instances of this crossover, ETH experienced moves greater than 35%, FXStreet notes. In other words, history clearly favors a significant move.
Liquidations are surging: $56.82 million evaporated in 24 hours. Long positions, which bet on the rise, were the hardest hit. RSI remains neutral. MACD weakens. Volumes are shrinking. Indicators are flashing orange.
But amid this dark picture, some detect a divergence. A tweet from Merlijn The Trader suggests it:
Ethereum is quietly breaking records again. Daily $ETH transactions are approaching ATH levels. No meme mania. No gas fee spikes. Just steady, unstoppable usage.
While technical signals turn red, a green tide flows behind the scenes: inflows into Ethereum ETFs. In eight weeks, nearly $2 billion has flowed in. On July 3, an additional $148 million was added. A discreet but massive influx, driven by institutional players.
Robinhood has launched the tokenization of 200 US stocks on Arbitrum, a Layer 2 solution of Ethereum. A symbolic turning point. Other players are following. BitMine is abandoning bitcoin mining to adopt a treasury strategy based on ether. SharpLink Gaming now holds the largest publicly traded share of ETH.
For Bitwise’s CIO, Matt Hougan, this is just the beginning: projections estimate over $10 billion in inflows in the second half of 2025. Ethereum thus establishes itself as the foundation of a tokenized crypto-economy.
And what if the current drop is just a disguise? A disguise under which institutions are patiently accumulating?
The fate of ether is playing out in a narrow corridor. Between $2,226, a magnetic support, and $2,535, an impassable ceiling, traders clash with Japanese candlesticks and limit orders.
In the background, a daily chart shaped like a bullish flag remains active. If ether breaks $2,650, a projection towards $4,300 to $4,500 is triggered.
This consolidation might therefore just be a pause. An accumulation point, waiting for a fresh breath.
The verdict remains pending. While some predict a relaunch towards $1,750, others dare to see further. A recent study even imagines an Ethereum at $706,000, citing mass adoption, exponential institutional flows, and programmed scarcity. Between promise and precipice, ether plays all or nothing.
