Following a brief and sudden market-wide uptick, the Ethereum price is drawing closer to the pivotal $2,100 mark again, recording a 12% rise in the past day. Despite the bounce on Wednesday, the broader market of ETH is still quite bearish, but bullish sentiment appears to be gaining momentum in the Spot ETFs sector.
Sharp Decline Meets Quiet Ethereum Spot ETF Inflows
The recent price movement of Ethereum has been quite harsh, with steep declines and ongoing volatility significantly impacting market sentiment. However, beyond the persistent waning price action, a different narrative is unfolding in the Ethereum Spot Exchange-Traded Funds (ETFs).
Despite the sell-off, causing ETH’s price to drop from $4,900 to under $2,000, spot ETF flows show renewed interest and, in certain situations, ongoing capital allocation. This discrepancy between robust ETF demand and poor price performance raises the possibility that institutional and long-term investors are seeing the decline as an opportunity rather than a warning.
After a period of significant outflows in the middle of 2025, Leon Waidmann, market expert and head of research at Lisk, highlighted that ETH has seen selling pressure steadily decrease across its exchange funds. The enormous surges of influx that occurred in late 2024 and early 2025 have vanished, but peak panic selling is also turning out to be an issue.
Compared to the previous turbulent periods, the recent flow bars are much smaller in both directions, and the sellers are running out of steam. According to the expert, this trend is relevant because the institutional exodus appears to be exhausting itself despite one of the sharpest ETH drawdowns in recent memory.
Currently, the weak hands that desired to exit the market have already done so, and this does not mean that the price bottom for ETH is in yet. There is still a slight outflow bias in recent weeks, and a clear accumulation signal has not yet unfolded.
However, the intensity of selling is clearly fading, representing the first thing that needs to happen before any trend reversal emerges. Thus, Waidmann has warned that when selling stops before sentiment recovers, investors should pay attention. Interestingly, this is where the next move begins to develop.
Short Positions On ETH Are Vanishing From The Market
Given the latest bullish response, the Ethereum market is currently undergoing a crucial shift. Market expert and investor CW reported that ETH short positions are now being destroyed completely, suggesting a growing positive market environment.
The expert highlighted that there are bearish bets left on the ETH market, with investors gradually leaning toward the long side. Despite this major shift in investors’ sentiment, the rate of increase of high-leverage long positions is very slow.
Data shared by CW suggests that Investors with high levels of leverage seem to have used up much of their remaining capital. However, the expert has classified this trend as a very positive situation that could be pivotal for the ETH’s price.
Featured image from Adobe Stock, chart from Tradingview.com
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Ethereum is holding firm within the $3,600–$3,800 range, showing resilience despite recent market pullbacks. Such a consolidation phase could be the calm before a major breakout, as chart patterns hint at a possible pre-rally formation that might propel ETH toward new all-time highs.
Potential Right Shoulder Formation Signals Structural Strength
Crypto analyst MarketMaestro delivered a detailed technical update on ETH, noting that the asset recently suffered a key rejection at its neckline resistance. Following this failure, the price is now positioned in a crucial retest phase at a red diagonal resistance line that it had previously surpassed. ETH’s market’s success in holding this diagonal is essential to avoid completely losing the bullish momentum built up in the prior moves.
Related Reading: Ethereum Slides Gradually — Buyers Losing Control As Market Turns Cautious
The analyst further noted that the current price movement suggests ETH could be forming a right shoulder in this region. This structural development is highly significant because the right shoulder simultaneously works to complete two major, highly bullish chart patterns.
It is the final component needed to create the handle for the Cup and Handle pattern, while forming a larger Inverse Head and Shoulders (Inverse H&S) pattern. The simultaneous formation of both the Inverse H&S and the Cup and Handle in the same area is extremely rare and powerful, indicating that the market is setting the stage for highly bullish formations for the next quarter.
Considering this powerful confluence of classic reversal and continuation patterns, along with the behavior of the broader market index, MarketMaestro views this entire consolidation phase not as weakness but as a logical pre-rally setup. He concludes with a high degree of confidence that the “pain threshold” or the maximum expected downside risk will likely not be very high.
Bullish Bias Intact As Long As Support Remains Firm
In a recent update, analyst Crypto Candy noted that the ETH scenario remains largely unchanged, despite recent market movements. A key takeaway from the analysis is that the asset is demonstrating significant resilience by strongly holding the crucial support zone between $3,600 and $3,800.
Related Reading: Here’s What Happens To The Ethereum Price If Bullish Momentum Holds
The analyst reiterated the importance of this specific range, emphasizing that as long as the $3,600–$3,800 zone successfully sustains, the medium-term bullish outlook remains firmly in place. This suggests that buyers are aggressively defending this level, preventing a deeper correction from continuing.
Given the strength shown at this support level, Crypto Candy maintains a strong price forecast: the market is expected to target $4,700, with the potential to reach a new ATH. This bullish bias, the analyst concludes, remains valid until the $3,600–$3,800 support zone is breached.
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Key takeaways
- Binance’s BNB is up 2.5% in the last 24 hours but could rally higher amid a strong market recovery.
- Former executives from Coral Capital Holdings are planning to launch a BNB treasury firm, and this could see BNB’s price surge.
Build & Build Corporation to raise $100M to launch a BNB treasury
Former executives from Coral Capital Holdings have launched a firm called Build & Build Corporation and intend to invest in a BNB treasury. This is according to a recent report by Bloomberg.
According to the report, the firm is looking to raise $100 million to fund this plan. Build & Build Corporation will be led by former Coral Capital execs, including Patrick Horsman, Joshua Kruger, and Johnathan Pasch. The company also intends to go public through a reverse buyback of an unidentified Nasdaq-listed company.
The move could see BNB’s price soar in the medium to long term. Companies such as Strategy, Metaplanent, and GameStop have billions of dollars worth of Bitcoin treasury. A similar approach by Build & Build Corporation could see BNB’s price hit a new all-time high.
BNB eyes $700 amid improved fundamentals
BNB, the native coin of the Binance ecosystem, has performed positively over the last 24 hours following a bearish weekend. At press time, BNB is trading at $638, up 2.5% in the last 24 hours.
The positive performance comes amid the ceasefire between Israel and Iran. If the bullish momentum persists, BNB could surge to the $700 level soon. The technicals have also improved to reflect the current price action.
The BNB/USD 4-hour chart shows that the bulls are regaining control of the market. The RSI of 55 shows that BNB is moving into the positive zone after spending days in the negative territory.
The blue and red MACD lines are crossing into the positive region, indicating a strong bullish momentum for BNB. If the bullish trend persists, BNB will test the first major resistance level at $676 soon. In case of an extended rally, BNB could hit the $700 mark for the first time since February.
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Crypto Market News: The financial markets have largely digested the market wide expectation that the US Federal Reserve would announce a no interest rate hike decision from the ongoing Federal Open Market Committee (FOMC) meeting. Adding to the existing hopes of rate hike pause in the last one week, the US consumer price index (CPI) data showed that inflation rate cooled down in May 2023. This goes well with the US Fed’s monetary tightening policy, which targets bringing down the inflation rate to 2%. Meanwhile, the top cryptocurrencies are showing little to no change compared to 24 hours ago, in what could be due to anticipation of the Fed decision.
Also Read: Binance Looks To Deregister As Crypto Service Provider In Cyprus
Yet, market participants could likely look closely for hints on what lies ahead, as against the current interest rate hike decision, assuming there will be a Fed pause. Encouraging statements in Jerome Powell speech could lay a foundational rally for weeks ahead, as fears of global market concerns still remain. Powell speech will begin at 2.30 pm eastern standard time.
Deutsche Bank Predicts Big Reaction From Powell press conference
While the CME FedWatch Tool shows a 97.7% probability of a Fed pause, it is the forecast about conditions in the upcoming FOMC meetings that could have a big impact following the announcement, Deutsche Bank said. Although the bank did not specify Bitcoin price or crypto markets particularly, previous FOMC meetings showed an immediate ripple effect from financial markets to the crypto market. The bank noted,
“Market pricing is currently pointing towards just one more rate hike in July, so any indication there’ll be more (or less) than that could lead to a big reaction.”
The S&P 500 Index is having a largely sideways movement on Wednesday, which is also reflecting on Bitcoin price.
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