Ethereum price eyes $2,600 breakout as U.S. government ETH transfer stirs market caution
Ethereum tests key resistance near $2,600 as U.S. government ETH transfer spooks market
Ethereum is approaching a key inflection point near $2,600, as bullish technical momentum collides with concerns over potential institutional selling pressure. The asset is currently trading near $2,575 as of July 8, building on a breakout above a short-term consolidation range.
Highlights
- Ethereum tests $2,600 resistance amid renewed technical momentum and bullish derivative flows
- U.S. government transfers $219K ETH to Coinbase Prime, sparking concerns of institutional selling
- ETH must close above $2,745 to confirm reversal; support sits near $2,489 and $2,500
RSI readings above 65 and a bullish MACD crossover on the 30-minute chart reflect improving sentiment, while ETH holds above the 20, 50, and 100 EMAs on the 4-hour timeframe. However, overhead resistance at $2,600 to $2,745 continues to cap rallies, making the next move critical for trend continuation.
Technical structure improves amid bullish derivatives positioning
The broader technical structure remains supportive. On the daily chart, Ethereum has broken out of a multi-week descending trendline and now tests triangle resistance, while on the weekly chart, the 0.5 Fibonacci retracement near $2,745 is back in play. A close above this zone could confirm structural reversal and open the door toward $2,850. Support zones sit at $2,489 (200 EMA) and $2,500 (prior consolidation base), providing a buffer against sudden pullbacks.
ETH price dynamics (Source: TradingView)
As per Coinglass, traders are leaning bullish. Open interest is up 1 percent to $34.4 billion, while total trading volume has risen to $53 billion. Options activity has also picked up, with a 7.32 percent rise in volume and a long-short ratio on Binance ETH/USDT above 2.99, indicating institutional conviction on the long side. However, such aggressive positioning raises the risk of liquidation if ETH faces unexpected downside.
U.S. government ETH transfer raises fears of a crypto selloff
On July 7, blockchain tracker Arkham Intel flagged a $219,000 Ethereum deposit by the U.S. government to Coinbase Prime, the platform typically used for institutional transactions. The move has triggered speculation over a possible ETH selloff, especially as the government holds over 65,000 ETH which is worth $166 million, originally seized from cybercrime cases. While no official statement has been issued, the transfer’s timing has raised alarms among traders amid ongoing regulatory scrutiny.
Previously, we discussed Ethereum’s inability to close above the $2,745 Fibonacci zone, highlighting its role as a structural ceiling. That dynamic remains relevant, with the latest push now challenging this resistance shelf again. The near-term trend remains bullish, but follow-through volume above $2,600 will be key to validating this move.
