Ethereum plunged 7% on Thursday, risking further decline to $2,260 after breaking below rising wedge support.
Stablecoin trading volume across Ethereum’s L1 and L2 surpassed $11 trillion in 2025.
Bot-driven stablecoin activity surged in May, hitting $480B in volume and 4.84M transactions.
Ethereum (ETH) fell over 7% on Thursday, dipping below the critical $2,500 level as stablecoin activity within its ecosystem soared.
Ethereum Stablecoin Activity Surges During ETH Recovery
Per a report by crypto exchange CEX.io, Ethereum’s ecosystem—including Layer 1 (L1) and Layer 2 (L2)—has seen over $11 trillion in stablecoin trading volume year-to-date in 2025, capturing a 60% market share (up from 40% in 2024).
While Solana and L2s led in volume early this year, Ethereum regained dominance as transaction fees dropped. L1 fees plummeted 92%+ in April to below 1 gwei, making Ethereum more attractive for stablecoin traders versus other chains.
"Ethereum’s growth in stablecoin activity coincided with record-low fees, buoying bot participation," wrote CEX.io Chief Analyst Illya Otychenko.
Bot activity hit all-time highs in May:
- $480B in stablecoin volume (57% of total)
- 4.84M transactions (31% of total)
This resurgence mirrored ETH’s 40%+ May price rally, expanding its market cap share from 7.4% to 9.7%. Meanwhile, U.S. spot Ethereum ETFs extended inflows to 13 consecutive days, adding $56.98M on Wednesday.
Ethereum Price Forecast: ETH Struggles at 200-Day SMA Amid Rising Wedge Breakdown
ETH’s 7% drop triggered $189.75M in futures liquidations (92% longs). Key resistance at the 200-day SMA has capped prices since early May, with 8+ rejections post-rally.
Technical Outlook:
- Bearish Scenario: Sustained wedge breakdown could push ETH to $2,260–$2,110 (50-day SMA support).
- Bullish Reversal: Reclaiming wedge support and breaking above $2,750–$2,850 may signal a trend shift toward $3,250.
Indicators favor bears:
- Stochastic Oscillator in oversold territory
- MACD histogram below neutral
FAQ Section
Q: Why did Ethereum’s stablecoin volume surge?
A: Record-low fees (below 1 gwei) attracted bots and traders, driving $11T+ in 2025 activity.
Q: What’s the impact of ETH’s rising wedge breakdown?
A: It risks a drop to $2,260–$2,110 unless ETH reclaims wedge support.
Q: Are Ethereum ETFs still influential?
A: Yes—13 straight days of inflows suggest sustained institutional interest.
👉 Explore Ethereum’s latest trends
👉 Stablecoin dominance explained
Disclaimer: This content reflects the author’s opinion and is not investment advice. CFDs are leveraged products carrying significant risk.
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