Ethereum slipped around 1% on Tuesday after a 12% weekly surge, as traders locked in profits near a key resistance zone. With ETH trading near $1,770, analysts read the dip as consolidation rather than a fresh selloff, while attention turns to ETF flows and upcoming US inflation data.
Ethereum paused its recovery on Tuesday, slipping around 1% after a 12% gain over the past week. Traders locked in profits near a technical resistance zone, testing whether the rally still had the momentum to push higher. The pullback followed a rejection where sellers emerged after the rapid move up.
Analysts frame the decline as a healthy consolidation rather than the start of another major selloff. The rebound came after softer-than-expected US labor market data strengthened expectations that the Federal Reserve could begin easing monetary policy later this year, lifting risk appetite across both Bitcoin and Ethereum.
ETH holds above its 50-period EMA
Ethereum trades near $1,770 after retreating from highs reached during its 12% weekly advance. The correction looks relatively controlled: the asset continues trading above its 50-period exponential moving average on shorter timeframes, preserving the bullish corrective structure of recent sessions.
Momentum indicators remain constructive despite easing from overbought levels. The Relative Strength Index has eased to neutral territory around 55, suggesting buying pressure has moderated without disappearing. Meanwhile, the MACD continues to hold a positive reading even as shorter-term momentum slows. That mix of fading momentum alongside positive trend signals often marks a consolidation phase after a sharp rally.
Institutional demand stabilizes as traders await inflation data
Broader fundamentals remain mixed, but institutional demand shows early signs of stabilizing. After several weeks of persistent selling pressure, spot Ethereum ETF outflows have slowed considerably, reducing one of the market's biggest headwinds. Continued treasury accumulation by corporate entities has helped establish a steadier demand floor.
Even so, Ethereum still lacks a strong catalyst to drive a sustained breakout. Markets continue to wait for fresh US inflation data and further guidance from Federal Reserve officials on interest-rate policy. Any shift toward faster easing could boost liquidity across risk assets, including cryptocurrencies.
Long-term risks still cloud the outlook
Structural challenges keep bullish conviction in check. Active addresses have fallen sharply from their early-2026 peak, reducing transaction fees and weakening the network's EIP-1559 burn mechanism, which makes ETH supply less deflationary. Ethereum also continues to trade below several major long-term moving averages on the daily timeframe, and earlier this year it confirmed a "death cross" — a bearish pattern that historically signals weakening long-term momentum.
Should selling pressure intensify, analysts are watching the $1,500 support zone as the most important technical level. A decisive break below it could expose Ethereum to deeper declines toward $1,275, while more pessimistic scenarios still point to the $1,000 region.
Source: CCN.com
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