#ETH Bearish Why?

Overview of Reasons for Bearish Ethereum

1. The derivatives market has not yet turned bullish, and there is still unease

Although Ethereum rose 41% last month, the derivatives market has not shown significant bullish enthusiasm, indicating that traders remain cautious. This conservative attitude can easily lead to selling pressure during short-term price pullbacks. 

2. Technical patterns show short-term reversal signals

Analysis by XIOSA indicates that Ethereum has recently formed a 'head and shoulders' pattern, with the neckline having been broken, suggesting a potential short-term pullback. 

3. A significant increase in ETH inflows to exchanges indicates rising selling pressure

In May, the price of ETH rose nearly 50%, but at the same time, over $280 million worth of ETH flowed into exchanges, indicating significant potential selling pressure. Coupled with a bearish divergence in the MACD, this is also a typical reversal warning. 

4. Geopolitical and policy risks exist in fundamentals and market sentiment

If the US dollar rebounds strongly and the Federal Reserve maintains a hawkish stance, it could suppress the overall style of the cryptocurrency market, posing a pullback risk for Ethereum in the short term.  

5. Market sentiment and operations can easily lead to crashes following 'leveraged rises'

Analysis indicates that the current rise is more driven by FOMO (Fear of Missing Out) sentiment. If there is a lack of fundamental support, it can easily lead to price bubbles that suddenly collapse.