Ethereum Pullback Erases $13 Billion Market Cap Amid Self-Custody Trend

Ethereum's recent rally peaked near $2,700 after rising from $1,800 within a week. Currently, ETH is trading at approximately $2,567, down nearly 4% in the past 24 hours. This decline has resulted in a loss of about $13 billion from Ethereum’s market cap.

Key points include:

Over 1 million ETH, valued around $2.5 billion, have been withdrawn from exchanges in the past month, indicating a trend towards self-custody and long-term holding.
The Pectra upgrade, implemented on May 7, previously caused a 50% price increase and renewed institutional interest.
Challenges for Ethereum include lagging adoption compared to Bitcoin, declining developer engagement, and competition from new blockchains.

ETH Price Outlook

The daily RSI indicates bullish conditions, currently at 69, though suggesting limited upside unless buying pressure increases. The price recently touched the upper Bollinger Band near $2,700 and is now pulling back towards the 20-day SMA around $2,090. A break below $2,450 could lead to declines toward $2,250, while a close above $2,650 would restore bullish momentum.

A potential bull flag is forming on the 4-hour chart, with key levels between $2,600 and $2,650. A breakout above this range may lead to a rally exceeding $3,600.