Ethereum, Copper, and Stocks Test Support Zones as Market Faces Profit-Taking Pressure

The price of Ethereum and similar high-risk assets is staying above critical support points. According to market data, Ethereum, alongside Copper versus Gold and RTY versus US500, is trading near zones that have previously triggered major shifts in market direction. Investors are reacting to ongoing profit-taking, volatility, and broader macroeconomic uncertainty.

Ethereum Holds $2,500 Amid Volatility

The price of Ethereum hovered around $2,520 on Tuesday due to ongoing selling from both those who bought recently and those who held in the past. The market saw signs of overheating as the price approached the critical $2,500 resistance. Trading volume surged, primarily driven by profit-taking, which led to increased volatility and a brief spike in futures liquidations.

Ethereum Market Overheats: Potential Short-Term Correction Before Breakout

“Ethereum’s approach to the critical $2.5K resistance level has led to overheating, characterised by a significant surge in trading volume… primarily driven by profit-taking.” – By @ShayanBTC7 pic.twitter.com/CYLPGAdU9Y

— CryptoQuant.com (@cryptoquant_com) May 20, 2025

The Mean Coin Age, a metric tracking how long ETH remains in wallets, has declined, reflecting a trend of investors continuing to distribute their tokens. Recent futures data charts revealed higher trading activity and a lot of liquidation orders in the past day, resulting in $71.83 million of assets being liquidated.

Despite these pressures, Ethereum’s price remains steady. Whale and institutional buying have matched much of the distribution from smaller holders. Notably, Nasdaq-listed BTCS disclosed the acquisition of 3,450 ETH, while Abraxas Capital increased its holdings to over 350,000 ETH since early May. On-chain data points to these transactions as helping stabilize prices despite retail investors’ recent profit sales.

Risk Asset Correlations at Lows

Recent chart data shows that the RTY/SPX (high-risk stocks vs. US broad market), Copper/Gold, and Ethereum/Bitcoin pairs are all trading at long-term support levels. These areas have previously signaled movements when trends either reverse or accelerate. Multiple assets reaching the exact figures indicate that the broader economy influences the market.

Market analysts, including CryptoQuant’s ShayanMarkets, believe that large clusters of historical buying activity surround these zones. Furthermore, IntotheBlock shows that more than 70 million ETH were purchased during this period, indicating strong interest in keeping prices up. If the prices decline under these points, more volatility could follow as investors react to unrealized losses.

The RTY/SPX ratio now stands at a level reached in 2020, when stock market risk changed significantly. The Copper/Gold measure, which tracks the differences between cyclical and defensive assets, is close to its lowest in years. The prices of Ethereum/Bitcoin trades are at the bottom of a multi-year range, which means Ethereum has underperformed compared to other cryptocurrencies.

Source: X

Macroeconomic Factors: Rate Cuts, Liquidity Injections, and Global Stability in Focus

Changes in the larger economy strongly affect the performance of risk assets. Many market players carefully follow the actions of central banks because lower interest rates and added cash could lead investors to pick riskier assets. Expectations for global stability have grown, as policymakers signal readiness to act if market conditions weaken further.

According to data, Ethereum investors saw nearly $300 million in realized profits and $60 million in losses in the last two days. This activity may happen before an accumulation phase, since buyers step in after sharp price corrections.

If Ethereum can flip its major moving averages—specifically the 50, 100, and 200-week SMAs—into support, analysts believe it could attempt a rally toward $2,850 and potentially $4,100. However, failure to hold above the $2,100–$2,260 range could invalidate this bullish scenario.

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