- Ah, Ethereum! It has breached the $2.8k resistance, yet whispers of a bearish reversal linger like a bad smell.
- That supply zone from February, if breached, could set the stage for the next grand rally—or a tragic farce.
In a curious twist of fate, Ethereum [ETH] has recently achieved a new milestone in staking, as if it were a character in a Chekhov play, striving for meaning in a chaotic world.
34.8 million ETH, or nearly 30% of the circulating supply, is now staked. This figure has surpassed the previous high set in November 2024, much like a hopeful protagonist who finally finds their purpose. Anticipation of Spot ETH staking ETFs in the coming weeks could bring excitement to investors, or at least a good chuckle.
But wait, there’s more! Another report suggests that ETH is not yet in a distribution phase, based on the trends of the whale address count metric. Traders, like opportunistic characters in a farce, have chances to seize profits from price moves.
As foretold a week ago, Ethereum climbed to the $2.7k-$2.8k resistance. However, its continued ascent beyond $2,780 was a delightful surprise, akin to a plot twist that leaves the audience gasping. In a post on X, trader RektProof laid out a trade idea, as if he were the wise old man in a village, dispensing advice.
This idea involved a deviation above the local high that could lead to a bearish reversal. It followed an earlier notion from late May, when a test of the local low at $2.4k was expected to result in a rally—and lo and behold, it did!
With the price climbing above $2,800, and short-term momentum and sentiment firmly bullish, a bearish reversal could play the role of the trickster, fooling the bulls and rewarding the short sellers who recognized the signs from the price action.
Examining the Ethereum triggers for traders to go long or short
The local resistance levels at $2,716 and $2,788 were both breached, much like the boundaries of a character’s comfort zone. Additionally, the price retested the $2,774-level as support before climbing past $2,800. By itself, it was a bullish signal, though some signs of reversal were already forming, like the tension before a dramatic reveal.
Back in February, the $2.885-$2,915 region served as a resistance. It may be possible that ETH would test this supply zone and then reverse, as RektProof theorized. If this indeed happens, traders can use a drop below $2,774 to look for short entries, much like a character seeking an exit from a tedious conversation.
On the other hand, a move past $2,915 would signal that long trades are favorable. The $3k level is a massive psychological obstacle for the bulls, akin to a character facing their greatest fear. However, with Bitcoin [BTC] near the $110k-mark, and buying pressure for Ethereum on the rise according to its OBV, a breakout might be on the horizon, or perhaps just another act in this ongoing drama.
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2025-06-12 09:14