After briefly dipping below $1,600 in early June, Ethereum has stabilized around the $1,740 mark. Despite this, ongoing weakness in derivatives markets suggests investor appetite remains muted following the recent correction.
Weakness persists in derivatives market
On Sunday, open interest in Ethereum futures fell to 13.64 million ETH, marking its lowest point since early May. While ETH prices staged a limited recovery above $1,700 on Monday, the broader outlook remains cautious.
Since May 28, approximately 2 million ETH have left the futures market, signaling that traders are shifting toward more defensive positions. Funding rates have fluctuated between positive and negative over the past two weeks, indicating neither buyers nor sellers are able to gain a clear upper hand.
Funding data from the past two weeks confirms a lack of clear direction in the market. After the sharp liquidations at the end of May and start of June, both bullish and bearish traders have shown noticeable hesitation.
In the spot market, exchange-held Ether reserves decreased only modestly in the past 48 hours. Meanwhile, US-listed spot Ether ETFs recorded $9.6 million in inflows on Tuesday, extending their streak of positive flows to two consecutive trading days. However, the total inflow volume remains insufficient to signal a strong trend reversal.
Resistance is restricting upward moves
On daily charts, ETH is trading below its 20, 50, and 100-day exponential moving averages, which range from $1,794 to $2,109. The nearest resistance lies at the 20-day average of $1,794, with another short-term barrier forming at $1,806.
If the price manages to break through this area, new targets around $1,909, $1,955, and $2,019 could come into play. However, the 100-day average near $2,108 may present an additional obstacle for any upward momentum.
| Indicator | Level |
|---|---|
| Nearest support | $1,741 |
| Critical support zone | $1,700 to $1,750 |
| Nearest resistance | $1,794 |
| Horizontal resistance | $1,806 |
$1,700 to $1,750 range under scrutiny
On the downside, first support is at $1,741. If this level is breached, further supports are expected at $1,524, $1,405, and $1,156. Market analysts are closely watching the $1,700 to $1,750 range as a critical short-term area.
Market analyst Ted Pillows highlighted that Ethereum has fallen below $1,800 and stressed the importance of holding the $1,700 to $1,750 zone for any recovery attempt. He warned that a loss of this range could prompt a retest of sub-$1,500 levels.
As June draws to a close, investors are also monitoring policy signals from the US Federal Reserve as well as ongoing light trading volumes. The current technical landscape indicates Ethereum is moving within a narrow band, with $1,794 to $1,806 as overhead resistance and the $1,741 to $1,700–$1,750 zone serving as key support.
