Ethereum Price Analysis: ETH loses $2,500 Support, Can Binance Top Traders Restart the Rally ?

Ethereum price is trading down 4% on Saturday May 16, as investors book-profits in anticipation of low weekend market volumes. While key indicators reflect dominant bearish sentiment, critical trading data reflects strong buying pressure from whale traders on Binance. 

Can the whales hold momentum above $2,400 or will they accelerate the active retail capitulation towards $2,200? 

Ethereum (ETH) Dips Below $2,500 First time in 5-days

Ethereum (ETH) has experienced a major dip after the US markets closed on Friday, emphasizing the role of US-based and global institutional players in the ongoing crypto market rally.

At press time, Ethereum price has dipped below the $2,500, losing 4% as it traded as low as $2,457, according to Coingecko data. 

With ETH positing 35% on the 14-day time frame, recent reports shows that inflows from large investors was a key bullish catalyst for Ethereum.

With corporate markets now shuttering for the weekend, Ethereum’s 4% dip on Saturday can be attributed to short-term traders investors scaling down on their positions in anticipation of weak market volumes over the weekend.

Binance Top Traders Could Rescue Ethereum Rally

Despite Ethereum’s 4% dip below $2,500, trading data from Binance reveals a compelling case for potential near-term support.

Notably, Coinglass‘ chart below shows Binance ETH/USDT Top Trader Long/Short Ratio currently stands at 2.6697, signalling that top-tier accounts remain heavily skewed toward long positions.

Even more telling, the Top Trader Long/Short Ratio by Accounts is higher at 3.04, meaning that over 75% of Binance’s top accounts are expecting a rebound.

These numbers reflect confidence among institutional-grade traders that Ethereum may still hold above $2,400. The strong top-trader bullish bias also stands in contrast to broader derivatives market signals.

While total ETH derivatives volume is down 12.78% to $72.27 billion, and options volume crashed 43.24% to $504.28 million, the options open interest remains stable, inching up 0.35% to $7.25 billion. This suggests strategic positioning rather than mass exit.

Meanwhile, liquidation data reveals an aggressive shakeout of long positions, with $81 million wiped out in the last 24 hours, including $16.9 million in the past 12 hours alone.

Despite this, short liquidations remain minimal at $12 million, indicating a lack of sustained downward conviction.

If Binance top traders maintain their leveraged long stance, Ethereum may bounce off the $2,450 to $2,480 range. A decisive push back above the $2,500 psychological level would likely invalidate short-term bearish momentum, especially if weekend volume surprises to the upside.

However, should sentiment deteriorate further, ETH price risks sliding toward the $2,200 support level, last seen during the April consolidation.

Ethereum Price Forecast Today: ETH Eyes Early Rebound to $2,600 if VWAP Defense Holds

Ethereum price is attempting to stabilize near $2,470 after shedding over 6% in the three consecutive losing days.

The sell-off, though aggressive, appears technically controlled, with the current daily candle finding support just above the volume-weighted average price (VWAP) at $2,485, a key level that often signals re-entry buying pressure.

The Relative Strength Index (RSI), which peaked at 70.85, is now cooling off at 66.78, signaling waning overbought conditions and opening space for renewed upside momentum.

The MACD histogram, although contracting, remains in positive territory, and the signal line crossover has yet to flash a bearish confirmation, keeping the bullish prospect intact.

More so, the Donchian Channel bands are narrowing, indicating price compression and suggesting a near-term breakout or breakdown is imminent.

A sustained break below $2,450 could accelerate declines toward the orange mid-band support near $2,235, while a close above $2,500 would likely validate VWAP support and reignite bullish momentum toward the upper band target at $2,738.

Momentum remains cautiously bullish as long as ETH defends the VWAP. Failure to hold would risk testing the $2,235 zone, while upside continuation may resume toward $2,700 once short-term resistance is reclaimed.