Ethereum Faces $2.8K Resistance Wall—Traders Brace for Sell-Off

Ethereum bulls beware: Glassnode data suggests a storm is brewing near the $2,800 price level. On-chain metrics hint at mounting selling pressure—just when ETH seemed poised for a breakout.

Market psychology at play? The $2.8K zone has become a psychological profit-taking magnet. Traders who bought the dip now face their first real test of diamond-handed resolve.

Meanwhile, crypto’s institutional bagholders keep chanting ’accumulation phase’ while quietly eyeing exit liquidity. Some things never change.

But there are indications that the rally is cooling. Following a strong expansion earlier this month, the Bollinger Bands have begun to tighten, indicating that volatility may be easing. Ethereum is currently trading near the midline of the Bollinger Band, indicating that the market is undecided.

At roughly 63.9, the relative strength index is holding steady in bullish territory, but it is no longer overbought. However, the moving average convergence divergence has begun to flatten out and just displayed a bearish crossover, which may be an early warning sign of the waning momentum.

From here, two scenarios could possible play out. If the $2,800 resistance breaks convincingly,  especially with the SEC’s decision on staking of Ethereum ETFs due by June 1,  ETH could make a quick move toward $3,000 and beyond. Institutional demand through yield-bearing ETFs WOULD be a powerful tailwind. 

However, if selling pressure builds up around $2,800, particularly from aggressive futures traders and break-even sellers, Ethereum might undergo a healthy correction and perhaps bounce back to the $2,200 support before any new leg higher. Ethereum’s upward trend is still in place for the time being, but caution is advised.