Ethereum price fell on Monday due to weakening momentum indicators and slowing institutional accumulation. $ETH In the short term, there is a possibility of a retest of the key $2,200 support zone.
According to data from crypto.news, Ethereum ($ETH) Price was trading around $2,288 at press time on May 12, after failing to sustain recent gains above the $2,400 area. Despite widespread strength in the crypto market earlier this month, the token has gradually lost momentum over the past few sessions.
One of the biggest warning signs on the daily chart right now is the ongoing bearish divergence of the RSI indicator. While Ethereum price has continued to make slightly higher highs since April, the RSI has been steadily making new lows over the same period, which often indicates that bullish momentum is weakening behind the scenes.
The recent pullback also comes as savings activity for institutional investors has begun to slow after several months of aggressive purchases.
Ethereum whale wallet holdings excluding exchanges increased from approximately 124.69 million, according to recent on-chain data. $ETH Close to 125.05 million $ETH At the latest adjustment stage, this amounts to a cumulative total of approximately 360,000 cases. $ETH.
However, buying momentum appears to have slowed in recent weeks as some large holders have become more cautious around current price levels.
At the same time, Bitmine reportedly slowed down. $ETH The company is already 86% towards its goal of owning 5% of Ethereum’s circulating supply, reducing the need for aggressive purchases in the short term.
Despite the recent downturn, some market analysts remain optimistic about Ethereum’s long-term prospects. Tom Lee of Fundstrat recently stated that “crypto spring has begun,” arguing that even though crypto prices continue to recover, investor sentiment remains unusually bearish.
On the daily chart, Ethereum continues to trade above the ascending support trend line that has been in place since late March. However, the price has repeatedly failed to break out of the broader resistance zone around $2,400-$2,450, and sellers continue to aggressively defend the upside momentum.
The bearish RSI divergence seen on the chart suggests that buying pressure is gradually waning. $ETH An attempt was made to stabilize the price near local highs.
Meanwhile, the MACD is starting to turn bearish after completing a negative crossover, but the histogram continues to print disappearing red bars, indicating that downside momentum may be starting to build.
If the selling pressure accelerates further, Ethereum could retest the ascending support trendline near $2,200. If a critical failure occurs below that level, you may be exposed. $ETH The downside will deepen towards the $2,000 psychological support zone.
On the upside, the bulls would need to retake the $2,400 resistance to override the bearish setup and reopen the path to the next major resistance near $2,600.
