Ethereum Price Today: $2,420
- Ethereum plunged 7% on Thursday, risking further decline to $2,260 after breaking below ascending wedge support.
- Stablecoin trading volume across Ethereum’s L1 and L2 networks surpassed $11 trillion by 2025.
- Bot-driven stablecoin activity surged in May, hitting $480 billion in volume and 4.84 million transactions.
Ethereum (ETH) dropped over 7% Thursday, losing the critical $2,500 level as stablecoin activity within its ecosystem soared.
Ethereum Stablecoin Activity Surges Amid ETH Recovery
According to a report by crypto exchange CEX.io, Ethereum’s ecosystem—including Layer 1 (L1) and Layer 2 (L2) networks—recorded over $11 trillion in stablecoin trading volume by 2025, capturing 60% market share (up from 40% in 2024).
Solana and L2s initially led in volume early in the year, while Ethereum lagged before rebounding. This resurgence signals Ethereum regaining dominance in stablecoin activity, fueled by declining transaction fees. L1 fees plummeted 92% in April to below 1 gwei, making Ethereum more attractive to stablecoin traders versus other L1s.
👉 Explore Ethereum’s fee dynamics
"Most of Ethereum’s growth in stablecoin activity occurred during this record-low fee period," wrote CEX.io Chief Analyst Illya Otychenko.
The low-fee environment boosted bot activity, with stablecoin transactions hitting 4.84 million (volume: $480 billion) in May—a historic high. Bots accounted for 57% of volume and 31% of transactions, their largest share ever.
This recovery parallels Ether’s 40% May price surge, lifting ETH’s market dominance from 7.4% to 9.7%. Meanwhile, U.S. spot Ethereum ETFs extended inflows to 13 straight days after a $56.98 million net influx Wednesday.
Ethereum Price Forecast: ETH Struggles at 200-Day SMA Resistance Amid Ascending Wedge Breakdown
Ethereum’s 7% drop triggered $189.75 million in futures liquidations (Coinglass data), with longs ($174.78 million) outweighing shorts ($14.97 million).
Liquidations spiked after ETH faced rejection at the 200-day Simple Moving Average (SMA) Wednesday—a key resistance level since ETH’s 40% rally earlier in May. Repeated failures to breach this level suggest persistent selling pressure.
Technical Outlook
- Breakdown Confirmed: ETH pierced the ascending wedge’s lower boundary, signaling potential downside to $2,260–$2,110 (50-day SMA support).
- Recovery Scenario: Regaining wedge support and holding above the 200-day SMA ($2,750–$2,850) could propel ETH toward $3,250. Historically, breaking the 200-day SMA ignites strong uptrends.
- Indicators: Stochastic Oscillator shows oversold conditions, while MACD histograms hover below neutral—confirming bearish momentum.
👉 Track Ethereum’s real-time price action
FAQs
What is Ethereum?
Ethereum is a decentralized, open-source blockchain supporting smart contracts. Its native token, Ether (ETH), is the second-largest cryptocurrency by market cap. The network hosts solutions like DeFi, NFTs, DAOs, and GameFi.
How do smart contracts work?
Smart contracts are self-executing agreements with coded terms. They automate processes (e.g., payments) when predefined conditions are met, eliminating intermediaries.
What is staking?
Staking involves locking crypto to earn rewards while securing a PoS (Proof-of-Stake) network. Ethereum transitioned from PoW to PoS in September 2022 ("The Merge") to enhance scalability and sustainability.
Why are gas fees important?
Gas fees pay for Ethereum transactions. High congestion raises fees, prompting validators to prioritize higher-paying transactions.