Global economic tensions and trade disputes continue to influence cryptocurrency markets, with ETH showing resilience despite broader market uncertainty.

The second-largest cryptocurrency is currently navigating a critical technical zone between $2,500-$2,530, which analysts identify as immediate resistance that must be overcome for continued upward movement.

Institutional interest remains strong, with spot Ethereum ETFs recording consecutive days of positive inflows, signaling growing confidence from larger investors despite the recent volatility.

Technical Analysis Highlights

• 24-hour ETH price action revealed a substantial 3.5% range ($99.85).
• Sharp sell-off during midnight hour saw price plummet to $2,477.40, establishing a key support zone.
• Extraordinary volume (291,395 units, nearly 3x average) confirmed the significance of the support level.
• Buyers stepped in at the $2,467-$2,480 support band, confirmed by high-volume accumulation during the 08:00-09:00 period.
• Recent price action shows bullish momentum with ETH reclaiming the $2,515 level.
• Potential higher low pattern suggests the correction may have found its bottom.
• $2,520-$2,530 area remains the immediate resistance to overcome for continued upward movement.
• Significant bullish surge at 13:35 saw price jump from $2,515.85 to $2,521.79, accompanied by exceptional volume (5,839 units).
• Sharp reversal occurred at 14:00, with price dropping 5.07 points to $2,508.02 on heavy volume (4,043 units).
• Hourly range of 14.46 points ($2,508.02-$2,522.48) demonstrates market indecision.

External References

• «Ethereum Holds Above Key Prices – Data Points To $2,900 Level As Bullish Trigger«, NewsBTC, published May 24, 2025.
• «Ethereum Forms Inverse H&S – Bulls Eye Breakout Above $2,700 Level«, Bitcoinist, published May 25, 2025.
• «Ethereum Price Analysis: Is ETH Primed for a ‘Healthy’ Correction?«, CryptoPotato, published May 25, 2025.

Bitcoin’s recent pullback has established strong volume-based resistance near $108,300, with support forming in the $106,700-$107,000 zone.

The correction accelerated with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal.

Technical analysis suggests Bitcoin is now trading within a compression zone, trapped between two major fair value gaps that will determine the upcoming market direction.

If bulls reclaim the $109K to $110K area, price could push toward resistance beyond $112K, while a break below $107,000 might test liquidity around $106K.

Technical Analysis Breakdown

• The decline accelerated during the 22:00-23:00 hour on May 24th with exceptionally high volume (16,335 BTC), establishing a strong volume-based resistance near $108,300.
• Support has formed in the $106,700-$107,000 zone where buyers emerged during the 09:00-10:00 period on May 25th, though recovery attempts have been modest with price consolidating around $107,500.
• The overall technical structure suggests a short-term bearish trend with potential for further consolidation before directional clarity emerges.
• Bitcoin experienced significant volatility with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal that saw prices decline to $107,393 by 14:00.
• The most substantial price movement occurred during the 13:35 minute candle where BTC jumped nearly $150 with exceptionally high volume (148.76 BTC), establishing temporary resistance around $107,630.
• Support formed near $107,400 where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.

External References

• «Bitcoin Price Prediction for May 25: Will Bulls Defend $108K or Is a Deeper Drop Ahead?«, Coin Edition, published May 24, 2025.
• «Why is Bitcoin Price Dropping Now? Will BTC Price Go Down to $100K?«, CoinPedia, published May 24, 2025.
• «Bitcoin Price Analysis: BTC Displays Signs of Weakness Following New All-Time High«, CryptoPotato, published May 25, 2025.

What happens when retail logs off from crypto and Wall Street tunes in? Looking at bitcoin’s BTC recent all-time-high, one would say it feels bullish and the industry is maturing.

That might as well be the case, but we might not be there yet. So before we floor our Lambos, let’s look under the hood.

First things first, retail investors have basically ghosted this rally. A quick search on Google Trends using the keyword «bitcoin» shows that the surge that was seen back in 2021’s bull market is non-existent. Back then, everyone and their grandmothers were Googling bitcoin, aping into altcoins and flooding the social media with rocket emojis. In 2025? It’s a ghost town in retail-land.

There was a blip of high retail interest surrounding the U.S. presidential election, when a short-lived memecoin mania took over retail sentiment. However, that surge is long gone, as memecoin prices tanked swiftly, even as bitcoin hit an all-time high this week, ripping past $111,000.

«Early in this cycle, memecoins became a concentration of risky retail-driven trading with related trading peaking in January,» said Toronto-based crypto platform FRNT Financial. «However, since then, there has been a virtual wash-out of interest and memecoin trading activity,» which shows «the tepid risk appetite in crypto at the moment,» FRNT added.

Translation: «Wen Lambo» crowd got burned, and they aren’t rushing back into the race track en masse anytime soon.

From Lambos to Corollas

On the topic of risk appetite, let’s go back to the car analogy.

During the 2021 bull market, people bought unreliable performance cars, stripped out the brakes and seatbelts to go faster than ever before, and did not care that there might be engine blowouts. As long as there was a promise of reaching the moon, bullish vibes were all that mattered.

Now? After losing tremendous amounts of money on those unsustainable go-fast cars for years, traders are driving Toyota Corollas—sensible sedans that are slow but steady and still on the road.

That risk-off sentiment is also evident from the funding rates, according to FRNT’s analysis of BTC perp rates—a measure of how much traders are willing to pay to maintain their long positions. When bitcoin reached a record high of around $42,000 in January 2021, the perp rate was about blistering 185%. Today, at bitcoin near $110,000, the rate is near 20% on crypto options exchange Deribit, meaning the risk appetite isn’t completely gone but nowhere near the 2021 frenzy.

ATH jitters

A third point to add is the high number of short positions in the market.

As CoinDesk’s Oliver Knight reported this week, the bitcoin long/short ratio is at its lowest point since the crypto winter in September 2022. This implies that the majority of the traders aren’t completely buying into this recent positive momentum and betting on bitcoin moving lower as a hedge for the new bullish rally.

The impact of such positioning was clear on Friday, when bitcoin swiftly crashed from near $111,000 to $108,000 in a matter of minutes and then bounced right back up to $109,000. The anxiety of a swift volatility is real.

So in a car-themed analogy, the drivers (in this case, investors) are still taking out their super-modified, unreliable sports cars for a weekend drive on the track. Still, they also have their Corollas following along. Just in case the engine blows on their go-fast cars.

Cautious optimism

Given the current macro-risk, it’s not entirely surprising that investors are on their toes and risk-averse. But this might just be exactly what your mechanic at the shop prescribed. In fact, this might be an indicator of a sustainable rally in the long term.

«Periods of low leverage and risk appetite in crypto have often preceded further sustainable gains,» according to FRNT.

«BTC appears to be in such a phase, set against a backdrop of numerous bullish catalysts and narratives,» the firm added.

The bottom line is that the retail Lambos might have been towed away, but big money is stepping in with their everlasting Toyotas. This might start a slow but steady race to the moon, not just a reckless joyride.

Read more: These Six Charts Explain Why Bitcoin’s Recent Move to Over $100K May Be More Durable Than January’s Run