ETH rebounds in the short term by 0.80%: a technical bounce triggered by short-covering in ETFs and a fresh low in exchange balances

From 09:45 to 10:00 (UTC) on June 4, 2026, the ETH price saw a short-term fluctuation of +0.80%, with a trading range of 1,752.63 to 1,766.66 USDT and a swing of 0.80%. After May posted the worst monthly performance in a year, market sentiment is extremely bearish, with the Fear and Greed Index falling to the extreme fear level of 11.

The main driver behind this move is a marginal improvement in ETF fund flows. In May 2026, ETH ETF saw consecutive 17 trading days of net outflows of about $401.62M, but in early June there are signs of short-covering or bargain-hunting inflows. As institutional mechanical buying demand decreases in the spot market due to reduced freely tradable float, price is directly supported.

Meanwhile, exchange ETH balances have fallen to a seven-year low. This structural change significantly reduces ETH supply available for immediate sale, tightening seller liquidity and amplifying price elasticity. In addition, net positions of long-term holders have remained in net inflow since February 24, 2026. Ethereum network daily trading volume is up 36.22% year over year, and more than 29% of total supply is locked in staking contracts. These factors together provide bottom support. On the technical side, price is in a key technical support zone; extreme fear sentiment combined with an oversold setup triggered a short-term technical rebound.

However, it’s worth noting that the 50-day moving averages on both the 4-hour chart and the daily chart are still trending downward, creating resistance. On the macro side, US inflation pressures remain ongoing, and the upcoming Non-Farm Payrolls data could trigger volatility in risk assets. Whether the ETF fund outflow trend in May has genuinely reversed still needs to be verified later.