Selling ETHUSD with $1,585 in view following short-lived recovery

Today’s daily chart showed ETHUSD’s attempt to consolidate following its recent decline. At the same time, the pair’s dynamics remain choppy and chaotic, with a clear tilt toward a flat range.

Bollinger Bands have noticeably narrowed. Meanwhile, prices continue to linger in the lower part of the channel. Such a reduction in volatility on Ethereum’s way to the middle line points to energy accumulation for a powerful move—though the direction is still unclear. The Moving Average of Oscillator (OsMA) completes the technical picture: readings stay above the neutral level, but the distance between the bar chart’s columns is gradually shrinking, signaling that bullish momentum is weakening. If prices manage to breach this threshold in the coming sessions, a bearish reversal will be confirmed. But this has yet to happen. For now, ETHUSD may continue its recovery.

An additional stabilizing factor is the recent wave of liquidations totaling approximately $981 million, which has partially alleviated overheating in long positions and temporarily eased pressure from forced sales. This creates an environment for Ethereum to fly within a wide channel, with $1,550–$1,600 as support and $1,780–$1,900 as a potential supply and short-squeeze zone. The pair could trade inside this range until it accumulates enough momentum to burst through either barrier—after which a more directional move is expected.

The fundamental picture remains slightly bearish. Capital continues to flow out of ETH exchange-traded funds (ETFs). The Ethereum Foundation is scaling back resources and discussing a potential funding shortfall for protocol development. These factors are currently raising doubts among buyers and reinforcing the consolidation scenario, depriving the market of solid reasons for a sustained rally in the near term.

Try out the trading strategy presented below:

Sell ETHUSD during pullbacks to $1,780–$1,810. Place Take profit at $1,585. Set Stop loss at $1,890.

This forecast remains relevant between June 25 and July 2, 2026.