Ethereum (ETH) traded near $2,086 on Wednesday, clinging to the $2,000 psychological level after weeks of sideways consolidation. The token has struggled to sustain rebounds since rejecting the 200-week simple moving average near $2,470 earlier this quarter. Analyst Ali Martinez said on May 26 that reclaiming the 200-week SMA at $2,500 and breaking above the 50-week SMA at $3,100 are needed for a bullish structure. Until then, ETH remains trapped inside a multi-year range that has contained price action since 2021.
Daily Chart Shows Bearish Adam and Eve Pattern, Neckline at $1,950
The weekly chart reinforces this view, with ETH trading below both the 200-week SMA ($2,472) and 50-week SMA ($3,054) after consecutive lower highs since the late-2025 peak near $4,800. On the daily chart, a developing bearish Adam and Eve pattern stretches from April into May: a vertical surge toward $2,420 was followed by a slow rounded consolidation that rolled over into selling pressure. The neckline sits near $1,950, and a confirmed breakdown projects a measured downside target around $1,450 based on the formation's height.
Momentum indicators have weakened. The daily RSI hovered near 37, remaining below the neutral 50 line throughout May. The Aroon indicator shows bearish dominance, with Aroon Down near 71 and Aroon Up pinned near zero. Martinez warned that $1,850 is the most important support level; a weekly close below that would likely accelerate downside toward $1,560 and possibly a retest of the lower multi-year range boundary near $1,070. Fellow analyst Dennis also flagged a potential drop to $1,600-$1,700 if Bitcoin slides to $65,000 amid renewed market weakness.
Bitmine Scoops 111,942 ETH, Tom Lee Sticks to Supercycle Thesis
Despite the fragile technical setup, large corporate buyers have continued accumulating. Bitmine Immersion Technologies disclosed this week it purchased another 111,942 ETH during the pullback, bringing total holdings to nearly 5.4 million ETH. Chairman Tom Lee reiterated expectations of a supercycle for crypto and Ethereum, citing tokenization demand from Wall Street and AI-powered blockchain agents. Bitmine's strategy mirrors Michael Saylor's Bitcoin model but focuses entirely on Ethereum. Lee previously set a target of controlling 5% of ETH's circulating supply, requiring over 6 million ETH.
Ethereum co-founder Vitalik Buterin confirmed the Ethereum Foundation would narrow its operational priorities to critical, non-replaceable activities. He also disclosed that nearly 90% of his personal net worth remains allocated to ETH. Yet internal debate over ETH's long-term value accrual has intensified. Bankless co-founder David Hoffman said he sold his ETH because only a marginal amount of ecosystem growth may benefit holders directly. ETF flows remained inconsistent through May, with several U.S. spot Ethereum ETFs alternating between inflows and outflows. Open interest has declined from local highs, suggesting leveraged traders reduced directional exposure after failed breakouts above $2,400. Funding rates across major perpetual futures have stayed mostly neutral to slightly negative, showing limited appetite for aggressive long positioning.
Macro Headwinds Persist, On-Chain Metrics Hint at Accumulation
Outside crypto-specific catalysts, macro conditions continue to limit risk appetite. Federal Reserve policy expectations remain a major variable, with higher-for-longer interest rates pressuring speculative assets. Brent crude volatility from geopolitical tensions has triggered broader crypto selloffs earlier this year. On-chain valuation metrics, however, have started attracting long-term interest. Martinez highlighted Ethereum's 0.8 Market Value to Realized Value pricing band near $1,850 as a historically important accumulation area. Previous drops below that threshold rarely lasted long before ETH established macro bottoms and entered new bullish cycles.