After a strong bullish comeback, Ethereum's momentum appears to be cooling amid a massive profit gain from holders.
Ethereum (ETH) is trading at $2,438, when it fell 3.5% over the past 24 hours after a strong 34% meeting in the past week. According to Coinglass data, open interest fell by 2%, indicating a decrease in leveraged bets. This decline comes after intense rallying with ETH over $1,800 to $2,500 in a few days.
A May 13 analysis of X by GlassNode shows that rapid climbing was supported by a lack of resistance between the $1,800 and $2,500 range. However, the rally stagnated at nearly $2,580. This was a significant level where around 1.3 million ETH had previously been accumulated. As prices approach that zone, the holding supply fell to ETH of 1 million, suggesting that many holders were sold near their own damage points. This has led to a recent pullback.
The sudden movement of $ETH was supported by low supply concentrations in that range, ranging from $1.8,000 to $2.5,000. The rally stagnated near 2.58K, where around 1.3m of ETH was retained. As prices approached this level, as owners came out, the supply of 1M decreased to approach the cost base and specify distribution: …pic.twitter.com/ngpboarrvu
– GlassNode (@GlassNode) May 12, 2025
You might like it too: Ethereum price gap with Bitcoin can set the stage for the first time since 2019
Rather than leverage, spot demand appears to be behind Ethereum's recent rally. In another May 12 analysis, encryption contributor Shayanmarkets noted that Ethereum's funding rate, which reflects sentiment in the futures market, has been flat. This indicates that the spot market accounts for the majority of the purchase pressure, not the traders using borrowed funds.
This is usually a good indication as it reduces the risk of sudden crashes brought about by mass clearing. Still, for the uptrend to continue, it may be necessary to see a slight increase in funding rates to show that futures traders are also confident.
Looking at technical photos, Ethereum shows signs of short-term fatigue. The daily relative strength index is 75, which lies in the over-acquired zone. That could mean that the pause or pullback is ahead.
Ethereum price analysis. Credit: crypto.news
However, the important moving average remains favorable by the Bulls. Ethereum is held above all short- and medium-term EMAs and SMAs, including 10, 20, 30, 50, and 100-day averages. The divergence of the moving average convergence was positive at 187.5, indicating that the upward momentum continues.
Resistance is currently around the $2,474 level. A sustained break above this line allows you to open the door for even more profits. On the back, if the price does not exceed $2,400, it could be fixed towards a $2,200 support range.
In the coming days, traders are looking to see if Ethereum can go above $2,580, or if recent gatherings will be cooled down to a deeper revision.
read more: Ethereum is “in the age of reconstruction,” says Vitalik Buterin seeks cultural change
