Ethereum News Today: ETH Dips 2%, Faces Technical Resistance

Key TakeawaysEthereum price falls about 2.3% to near $3,100, underperforming the broader crypto marketRegulatory pressure from California law raises compliance and liquidity concernsTechnical resistance near $3,150–$3,200 caps short-term upsideRegulatory Developments Add PressureEthereum came under pressure after California's bill of SB 822, classifying dormant ETH held by custodians as unclaimed property, came into effect at the start of this year.The rule introduces new compliance obligations for exchanges and custodial platforms, raising operational costs.For markets, this creates short-term uncertainty around liquidity and access, especially for institutional participants.Concerns are growing that similar state-level actions could fragment U.S. crypto regulation, weighing on institutional interest.Market-Wide Caution Hits ETH PriceBroader crypto conditions remain cautious.Spot trading volumes dropped 18.93% in the past 24 hours, signaling reduced conviction across digital assets.Bitcoin ETFs recorded $243M in net outflows, reinforcing a profit-taking narrative after strong year-to-date gains.With ETH showing a 0.95 correlation to Bitcoin, the pullback amplified Ethereum’s downside move.Technical Resistance Limits UpsideFrom a technical standpoint, ETH failed to hold above the 7-day moving average near $3,154, triggering renewed selling pressure.The RSI around 57 indicates bullish momentum is cooling but not yet exhausted.Short-term averages cluster between $3,030 and $3,120, while longer-term resistance remains firm near $3,300–$3,350.Low turnover, estimated near 6.3% of market cap, suggests thin liquidity, magnifying price swings.Institutional And Whale Signals DivergeDespite near-term weakness, whale activity remains notable.BitMine Immersion Technologies added $105M in ETH, bringing its total holdings to about 4.07 million ETH, or 3.36% of supply.On-chain data also shows smaller whale wallets accumulating modestly, while some smart money trimmed exposure.This divergence reflects mixed confidence, with long-term accumulation offset by short-term caution.ETH Outlook: Key Levels to WatchThe near-term Ethereum forecast hinges on whether ETH can hold support near the 30-day SMA around $3,040.A sustained break below this zone could open room for deeper consolidation.On the upside, reclaiming $3,150 and then $3,200 would signal renewed strength.