Ethereum ($ETH ) has been navigating one of its toughest monthly drawdowns in recent history, dropping over 21% so far in June after a heavy correction in May. A combination of record spot ETF outflows, rising macro headwinds, and geopolitical tensions recently drove ETH down to over a one-year low, forcing a sweep of the critical $1,500–$1,560 demand zone.
However, the weekend is bringing some signs of stability. As selling pressure exhausts, bulls are fighting hard to spark a recovery phase.
📊 The Technical Breakdown
The Defensive Floor 🛡️: The $1,500–$1,560 region remains the absolute line in the sand. This is a massive historical accumulation zone that has historically acted as a cycle floor. Holding this zone on the weekly chart is vital to preventing a deeper capitulation event.
The Immediate Resistance ⚔️: The ultimate near-term hurdle for the bulls sits right at $1,700–$1,725. ETH has repeatedly struggled to reclaim this level over the past few days. A high-volume daily close above $1,716 is needed to break the current downtrend.
The Breakout Target 🎯: Flipping $1,725 into support will likely trigger an aggressive short squeeze, clearing the way for a fast relief rally back toward the next major structural supply block at $1,800–$1,840.
💡 Creator Trading Strategy
On-chain and derivatives data show a major leverage flush, with futures funding rates recently dipping into negative territory—meaning late short-sellers are now paying long-holders. This heavy bearish sentiment often acts as prime fuel for a counter-trend short squeeze.
Additionally, institutional layout remains highly active under the surface, with infrastructure giants like Fireblocks expanding standardized ETH staking rails as roughly 30% of the supply stays locked up. Watch the Bybit spot books closely; if BTC holds its ground above $61K and ETH spot volume expanding past $1,700, aggressive long entries become highly favorable. Keep your stops tightly tucked just under the $1,500 psychological support block.
💬 What's your play on Ethereum right now? Are you buying this $1,500–$1,600 area believing the bottom is locked in, or are you waiting for a confirmed breakout above $1,725 before entering? Share your charts and price targets below! 👇