Ethereum (ETH) registered its first bullish month-to-date performance of the year with a rise in excess of 46% on the back of revived investor sentiment driven by whale demand and strong flows into US spot Ethereum ETFs. 10K–100K ETH addresses added to their balance by 1.12 million ETH, with ETFs seeing nearly $494 million in net inflows, indicating growing institutional demand. Despite testing primary technical support levels at $2,578, ETH remains in the limelight with exchange net outflows showing ongoing spot buying pressure. Contrarian signals from open interest and technicals suggest short-term caution as ETH makes its way towards probable resistance and support levels.
KEY LOOKOUTS
• Ongoing legal decisions and negotiations regarding US tariffs on the EU will remain major drivers of market sentiment and the price volatility of Bitcoin.
• Ongoing flow of Bitcoin off exchanges into storage may alleviate near-term sell pressure and could act as support for future price appreciation.
• Monitor significant Bitcoin support levels at $102,500, $99,810 (50-day EMA), and $95,617 (100-day EMA) as key indicators for possible price bouncing or moving lower.
• Mood in the markets has turned “extreme fear,” and news and technical response reaction from traders will be the key to determining Bitcoin’s near-term path.
Investors would do well to keep an eye on US tariff developments, as continued court rulings and trade talks should dictate Bitcoin’s price volatility over the next few weeks. The consistent outflow of Bitcoin from exchanges to long-term wallets indicates increasing confidence among holders, which would ease short-term selling pressures and set the stage for future appreciation. The important technical support at $102,500, as well as the 50-day and 100-day EMAs of $99,810 and $95,617, will be important in deciding if Bitcoin will stabilize or see further losses. In the meantime, a move in investor sentiment to “extreme fear” underscores the market’s susceptibility to news and volatility, with trader attitude a key driver of Bitcoin’s near-term direction.
Watchpoints include continued US tariff announcements, which will weigh significantly on Bitcoin’s price volatility. The ongoing flow of coins into long-term storage is indicative of holder confidence, as key support levels at $102,500 and below will decide whether Bitcoin can recover or continues to decline.
• Bitcoin dropped sharply below $106,000 due to uncertainty regarding US tariffs and volatile market sentiment.
• Delaying a 50% tariff on the EU until June 9 temporarily steadied Bitcoin at around $110,000.
• Court decisions against President Trump’s tariff powers caused sell-offs globally, including in the crypto sector.
• Investor mood changed from bullish confidence to “extreme fear,” indicating increasing volatility and losses.
• Reserve exchanges keep falling as investors store Bitcoin in long-term storage, showing faith that prices will rise higher in the future.
• Falling Mean Dollar Invested Age (MDIA) indicator implies older coins being replenished into circulation, potentially driving the next bull run.
• Critical technical support levels to monitor include $102,500, $99,810 (50-day EMA), and $95,617 (100-day EMA), as Bitcoin is exposed to bearish pressure.
The latest events in US trade policy have strongly influenced the cryptocurrency market, especially Bitcoin. Tariffs on the European Union, suspended and facing ongoing legal hurdles, have instilled a degree of uncertainty that has shifted investor sentiment from bullish to bearish. This increasing apprehension has prompted investors to withdraw their assets from exchanges and migrate them to long-term storage, an indication of more conservative management as they wait for clearer direction in markets.
BITCOIN DAILY PRICE CHART
CHART SOURCE: TradingView
Meanwhile, however, evidence is emerging that long-held Bitcoins are beginning to return to the marketplace, perhaps signaling activity and interest in spite of present anxiety. On balance, the crypto market is charting a sensitive dance as geopolitical and economic considerations persist in affecting investor attitudes and carving out future directions. The next few weeks will be critical in determining how these outside pressures affect the general market’s rebound and development.
TECHNICAL ANALYSIS
Bitcoin is now showing bearish sentiment as the major indicators are pointing to prudence on the part of investors. The Moving Average Convergence Divergence (MACD) is moving downwards towards the zero line, indicating reducing upward momentum. In the meanwhile, the Relative Strength Index (RSI) has dropped below the midline, indicating mounting selling pressure. Markets are monitoring key support levels closely, and breaking below them could bring further weakness, while defending them could provide a springboard for a possible recovery. Technical indicators, overall, are suggesting a prudent short-term outlook as the market absorbs recent turbulence.
FORECAST
If Bitcoin can stabilize and maintain important support levels, there’s a chance for renewed rally fuelled by increasing long-term holder conviction and the return of aged coins into circulation. Favorable news from US trade negotiations or softening tariff tensions would then reinstate investor confidence and stimulate new buying pressure. Moreover, as institutional appetite continues to be robust, any positive macroeconomic cues—such as decelerating inflation—may assist Bitcoin in regaining higher price levels and drive toward new all-time highs.
On the positive side, sustained uncertainty regarding US tariffs and possible legal reversals may extend market turbulence into investor sentiment. As Bitcoin dips below important support levels, it might provoke sharp sell-offs as investors cut exposure in increased fear. Consequently, heightened regulatory focus or general economic headwinds have the potential to dampen demand growth, sparking further losses and an extended consolidation period before the market finds equilibrium.
