Evaluating the Price of Ethereum: Will ETH Drop to $2K as the Upward Drive Slows Down?

Ethereum struggles to break past the crucial resistance level of $2,800 following a strong rally this May. Although the price remains above the 100-day moving average and the previous breakout zone near $2,200, the repeated failure to surpass the $2,800 resistance raises doubts about the strength of buyer interest at these levels.

The Coinbase Premium Index, which reflects demand from U.S. investors, is holding slightly above zero, showing some degree of underlying strength in the spot market. However, if this premium starts to fade or turns negative, it might point to a decline in interest and a possible short-term peak. Consequently, if demand from the U.S. reduces, Ethereum could enter another correction phase.