The recent drop in Ethereum’s price has caught traders' attention. Let's examine how network upgrades, institutional trends, and technical analysis could influence ETH's future movements.
Network Upgrades: Scaling and Staking Dynamics
The May rollout of the Pectra upgrade enhanced Layer-2 throughput and support for smart accounts. The upcoming Fusaka hard fork aims for 10x Layer-1 scaling through PeerDAS, potentially regaining market share lost to Solana.
Institutional Trends: ETF Momentum and Liquidity Risks
Despite the price pullback, ETH ETFs attracted $700M in inflows between May 22 and June 4. If the SEC approves staking-enabled ETFs, analysts estimate that 5–8 million ETH could be locked up, further constraining supply.
Technical Outlook: Support and Resistance Levels
Ethereum is now trading below key moving averages, indicating short-term weakness. The MACD indicates persistent bearish momentum, while support levels are at $2,371 and resistance at $2,758.
Ethereum's short-term dip reflects a mix of macro uncertainty and internal network shifts. As upgrades like Fusaka evolve and ETF developments progress, ETH may find renewed strength, but whale concentration and Federal Reserve policy loom large, suggesting continued volatility.
