Optimism drops 7.17% as network shifts focus from op-geth to op-reth

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Optimism slides 7.17% today to $0.1204

Highlights

Optimism will discontinue support for op-geth and op-program by May 31, 2026, focusing new development on op-reth and migrating its fault proof system to kona-client.
This strategic technical shift represents a significant change to the core infrastructure of the Optimism ecosystem.
OP price remains under heavy selling pressure, trading well below major resistance areas, with a probable range of $0.1100 to $0.1320 and high risk of further declines.

Technical pivot as Optimism retires legacy clients and advances op-reth

Optimism announced it will end support for op-geth and op-program as of May 31, 2026, shifting its development focus to op-reth. The transition will also involve moving the network’s fault proof system to the kona-client. This marks a major technical direction change for the Optimism ecosystem.

Entrenched bearish momentum as indicators confirm high-volume selloff

Momentum remains decisively bearish, with both the MACD and ADX signaling selling pressure. The daily RSI stands deep in oversold territory at 29.65, while Stochastic RSI flags as overbought on the daily chart due to potential signal lag; all lower timeframes show oversold readings. The CCI is neutral but near oversold, and Bull/Bear Power indicates intraday seller dominance, supported by continuous pressure after a high-volatility, directional session. The Ichimoku Kijun at $0.1551 acts as immediate resistance, and the current price is near the lower end of its intraday range, with most momentum indicators confirming strong persistent selling.

Range contraction likely as downtrend persists and bullish risk fades

Looking ahead, the adjusted weekly price range for OP is expected between $0.1100 and $0.1320, capturing typical volatility while maintaining alignment with the current downtrend. There is a very low probability (less than 20%) of a meaningful price increase in the next 5 trading days, as all major weekly trend and momentum indicators continue to confirm downward bias. The baseline scenario points to sideways movement within this lower volatility band, with a bullish scenario only arising if the price breaks above the Ichimoku Kijun at $0.1551 and a bearish extension likely if support at $0.1100 fails.

Viktoras Karapetjanc, expert at Traders Union, views current OP price action as weak, but sees opportunity for trend reversal if critical levels are reclaimed. He notes that technical indicators confirm bearish control; however, the recent shift in Optimism’s development strategy may improve long-term sentiment. The analyst emphasizes that near-term momentum remains negative, with downside risk dominating until a move above the Ichimoku Kijun at $0.1551. A failure of the $0.1100 support could trigger further losses. "If the market digests these fundamental changes and buyers reclaim $0.1551, I expect a constructive shift in price dynamics for OP."

Previously it was reported that Optimism remains in a sustained bearish trend, trading well below all major moving averages with oversold momentum indicated by weekly RSI, MACD, and other oscillators. Immediate resistance sits near the Ichimoku Kijun, while the absence of strong weekly support and persistent seller dominance suggest further downside or consolidation is likely in the coming week.

Source of Data: OP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.