ETH Faces 4% Drop After 50% May Surge as Whale Activity and ETF Inflows Signal Ongoing Demand

Ethereum is currently trading at $2,534.91 with a 24-hour price decline of 4.19% and increased trading volume, reflecting ongoing volatility and active market participation. The recent price drop follows a period of strong performance in May, including a nearly 50% monthly surge and significant whale accumulation, but is now influenced by technical resistance, a bearish divergence on key indicators, and institutional caution highlighted by recent warnings. Despite the short-term pullback, increased bridge flows, stablecoin supply growth, and robust on-chain activity—such as record gas usage and sustained institutional inflows into Ethereum ETFs—indicate continued underlying demand and liquidity, suggesting that current price movements are driven by a mix of profit-taking after a strong rally, technical consolidation, and broader adoption trends.