Ethereum is trading near $2,482 as traders await the Fed's decision. Will the $2,300 support floor prevent a deeper liquidation and breakdown?
Ethereum's price broke on Tuesday, May 20 and stabilized below the $2,500 level, coinciding with accelerating momentum in the broader crypto market. Key technical indicators suggest that $ETH price could be at risk of a massive liquidation if $2,300 holds.
Ethereum (ETH) stalls below $2,500 as market awaits further signals
Ethereum (ETH) price stalled below $2,500 on Tuesday, down 1.8% from its recent weekly high.
According to CoinGecko, ETH briefly touched $2,588 intraday before pulling back to $2,482 at press time.
This cooling mirrors the broader altcoin sector, where only Solana (SOL) and Tron (TRX) have gained 1.7% and 2.3%, respectively.
With the Trump-China trade deal facing new hurdles and uncertainty in institutional sentiment, many investors are awaiting the US Fed’s June rate decision and the SEC’s pending decision on altcoin ETF applications scheduled for June 16.
Ethereum Technical Analysis: Parabolic moves above $2,700, but $2,300 buys and sells are big
On the daily chart, Ethereum’s Parabolic SAR is now at $2,722, which is well above the current price action.
This indicates that ETH is now trading below $2,500 and printing consecutive lows, with buyers looking cautious.
The Relative Confidence Index (RCI) ribbon shows a short-term bearish divergence: the fast line has slipped to -36.97, while the longer-term values remain elevated (87.72 and 74.41).
This divergence suggests a possible change in short-term sentiment, even if medium-term trends are bullish.
The $2,339 mark is serving as a psychological and structural support floor highlighted by previous consolidation zones and high-volume node activity. If ETH price breaks below this line, bears could target $2,100 next.
However, as long as bulls defend $2,300, the broader rally from May remains intact, especially as ETF catalysts and macro signals are still bullish.
Ethereum Derivatives Markets Signal Cautious Optimism, but Face Long-Term Liquidation Risks
Derivatives data paints a mixed picture for $ETH . While open interest rose 1.72% to $30.94 billion, trading volume declined sharply by 34.79% to $89 billion, indicating cooling confidence among active traders.
Options volume also fell 32.62%, despite open interest remaining steady at around $7.69 billion.
The long/short ratio on Binance is 0.9849, suggesting balanced sentiment, but a deeper breakdown shows that top traders are heavily stacked with a 2.77x account-based long/short ratio and a 2.68x position-based ratio.
Liquidation data reflects increasing risk. In the last 24 hours, more than $64.37 million was wiped out in $ETH derivatives — $35.46 million from longs and $28.90 million from shorts.
The most recent 1-hour window saw $1.54 million in rackets, with long positions accounting for 28%.
Despite the boom in whaling, declining volumes and rising racket tolls, particularly the $22.35 million long liquidation over the past 12 hours, signal fragility.
If ETH breaches $2,300, cascading liquidations could intensify downside pressure possibly driving prices towards the $2,100 level.
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