Buying ETHUSD with $2,410 target amid diplomatic hopes and shrinking liquidity

Ethereum (ETHUSD) is currently trading near $2,330, feeling the sting of profit-taking after its recent surge. But the downside has a ceiling, with two tailwinds actively coming into play: optimistic rumors of a Middle East truce and a dollar that is gradually losing its strength. Together, these forces are keeping a deeper correction at bay and setting the stage for prices to recover. 

The backbone of ETH's resilience is hard to miss—institutional demand is heating up. Exchange reserves have hit rock bottom, and BitMine has staked over 4.5 million tokens, steadily draining available liquidity from the market. This structural shortage is exactly what's limiting the decline and offering a solid launchpad for the next upward movement.

However, not everything is rosy. Ethereum's biggest hurdle remains its own fading fundamentals. The competition is nipping at its heels. Solana and Hyperliquid have already seized 42% of the DApp market's revenue, luring users with their high speed and low fees. Add to that a wave of hacks that have shaken confidence in DeFi protocols, and you get a steady drip of capital leaving the ecosystem.

Still, hope may be on the horizon. The planned Glamsterdam hard fork promises to triple the base layer's throughput—a potential game changer that could reverse the crypto's losses, breathe life back into the network, and pour fuel on bullish momentum.

Technically speaking, Ethereum is now in the middle of a corrective pullback. The Stochastic Oscillator tells the tale: a bearish crossover above the 50 mark signals that buying steam is running low. Meanwhile, elevated volume on red candles points to genuine selling pressure. Since ETH has already erased nearly half of the gains made from April 30 to May 5, the market appears ready to consolidate until the next major catalyst emerges.

For those looking to act, pay attention to the trading plan down below:

Buy the ETHUSD pair at the current price. Lock in profits at $2,410. Place Stop Loss at $2,290.

This forecast holds true from May 7 till May 14, 2026.