Ethereum MEV Bot Loses $7.5M in Trap as Tom Lee Dismisses Foundation Funding Crisis

Ethereum News

Ethereum (ETH) was changing hands near $1,731 as of June 22, pulling the $1,700 area back into focus across the market. The asset posted a modest 24-hour gain and traded between $1,708 and $1,742 on the day, hovering close to levels last seen in March 2021. Analyst Ali Martinez noted that, despite violent swings, long-term holders have little to show for it — a $10,000 position opened five years ago is worth roughly the same today. In the near term, the $1,750 threshold is viewed as a key strength signal, while a sustained close below it would read as a sign of weakness.

With only days left in June, market data shows Ethereum facing the risk of closing three straight quarters in the red for the first time in its history. After trading above $2,400 earlier in the year, ETH has slipped to around $1,725 and is struggling to clear major resistance zones. In past cycles, sharp corrections were typically followed by strong rebounds, yet this time the price response has been noticeably softer. Global economic uncertainty, tightening liquidity and rate expectations are weighing on risk appetite, and a more defensive posture from institutions is making fresh demand harder to come by in the altcoin market. The quarterly close is being watched as a real stress test of the market’s resilience.

As the downturn deepens, debate over whether ETH could slide toward $1,000 has flared up again. The asset has endured a long decline since its 2025 peak near $4,950. Network upgrades that lowered transaction fees, alongside the migration of activity to Layer-2 networks, have markedly reduced ETH burn — leaving supply mildly inflationary rather than deflationary as many expected. Even so, Ethereum remains the backbone of tokenization, stablecoins and decentralized finance (DeFi) applications. Analysts point out that periods of extreme pessimism have historically preceded recoveries, so a potential bear market bottom could open a long-term buying window.

Ethereum co-founder and Consensys CEO Joseph Lubin pushed back against criticism of Vitalik Buterin’s venture into writing a science-fiction novel. Buterin has published the first two chapters of a book centered on decentralized governance; set in a fictional country, the story explores advanced mechanisms such as quadratic voting and AI-assisted decision-making. Lubin described Buterin as an exceptionally effective communicator and argued that work of this kind could aid ecosystem adoption. Community reaction was mixed, with some questioning the project’s timing during a steep price correction. Adding to the criticism was the departure of nine core members from the Ethereum Foundation.

On the technical side, the near-term map is anchored by a price gap around $1,709. According to analyst Jesse Peralta, a pullback that holds this zone could build healthier footing; failing that, $1,692 and then $1,650 come into play. To the upside, initial resistance sits in the $1,740 to $1,750 band, while on a monthly scale the decisive threshold stands out at $1,960 — a level above which Ethereum has never managed a monthly close. A break of that resistance would put $2,850 in view as the first major target, with $3,740 and $4,862 above it marking the breakout zone beyond the prior peak.

On the institutional accumulation front, attention has turned to corporate buyer BitMine. Buying steadily since December 2025, the company now holds 5.54 million ETH — about 4.58% of circulating supply — a sign that institutional interest persists despite price pressure. On-chain data shows heavy ETH outflows from Binance throughout June 2026; such declines in exchange reserves are often read as a hint that near-term selling pressure may ease. The divergence between the accumulation trend and weak price action is taken as a signal that investors are using lower levels to build long-term positions. Still, the durability of that demand remains tied to how macro conditions unfold.

(as of 08:46 UTC) According to COINOTAG’s proprietary composite support/resistance engine spanning 42 indicators (as of 08:43 UTC), the $1,766 resistance is the strongest barrier at 66/100, a score fed by the overlap of Ichimoku Senkou A, the EMA 20 and the R1 pivot. Above it, the $1,983 resistance stands out at 62/100 (SMA 50, Fib 0.500). Below, the $1,709 support is the firmest floor at 76/100 (Fib 0.214, prior-day close). Derivatives data show measured optimism: a funding rate of 0.0055%, open interest of $6.55 billion and a long/short ratio of 2.26 (69.3% long). The Fear and Greed Index sits at 20 in extreme-fear territory; RSI is 44 while the MACD is flashing a bullish signal. The bullish case requires reclaiming $1,766, whereas losing $1,709 invalidates the thesis.