Cryptocurrency Memes PEPE & WIF Surge While Ethereum Struggles

Ethereum Struggles at $2,500 as Meme Coins PEPE and WIF Defy Market Trends

A Tale of Two Markets: ETH's Bearish Squeeze vs. Meme Coin Mania

The cryptocurrency market is witnessing a stark divergence this week. While Ethereum (ETH) battles persistent selling pressure near the $2,500 pivot, meme coins like PEPE and Dogwifhat (WIF) are staging explosive rallies, with PEPE surging 11.6% in 24 hours and WIF up 11.4% amid revived risk appetite.

As of June 3, 2025, Ethereum trades at $2,611.34, recovering slightly from a 24-hour low of $2,481 but still down 2% from last week’s peak. Analysts attribute ETH’s stagnation to repeated rejections at the $2,580–$2,600 resistance zone, with technical indicators like the RSI (33.29) and MACD flashing bearish signals. Meanwhile, Bitcoin’s rebound above $106,000 has fueled speculative bets on meme coins, echoing 2021’s "altseason" dynamics.

The Meme Coin Resurgence: Social Hype and GME Nostalgia

The PEPE rally, which saw its market cap hit $4.5 billion, is partly driven by nostalgia for the 2021 GameStop (GME) short squeeze. LookOnChain reports one trader turned $3,000 into $46 million by holding 49 trillion PEPE tokens since April. "PEPE embodies the anti-establishment spirit of the GME saga," says Alexandra Altamonovskaya, Creative Lead at TriliTech. "Its virality taps into a cultural narrative of defiance".

However, social media chatter around meme coins has plummeted since January—Santiment data shows Dogecoin’s social volume dropped 89% from its peak. This suggests current gains rely more on leveraged trading than organic hype.

Ethereum’s Battle: Technicals vs. Fundamentals

ETH’s 4-hour chart reveals a descending triangle pattern, often a bearish continuation signal. Key support lies at $2,450; a breakdown could trigger a slide toward $2,420. Institutional inflows offer a counterbalance: U.S. spot ETH ETFs now hold $33 billion in assets, outpacing Bitcoin’s early adoption curve.

"Ethereum’s staking yield and Layer-2 growth are long-term bullish," notes VanEck researcher Patrick Bush. "But macro headwinds like U.S. Treasury yields above 4.6% are compressing risk assets".

What’s Next?

Short-term ETH price action hinges on whether bulls reclaim $2,530 with strong volume. For meme coins, sustainability remains questionable—FXStreet warns their volatility "can be a price trap for the unprepared".

Share your thoughts on our X: Can PEPE’s rally outlast Ethereum’s consolidation?

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.

Sources:

• CryptoTimes: "Ethereum Price Eyes $3000 as Meme Coins PEPE, WIF Rebound"

• FXStreet: "Crypto Gainers WIF, SPX, HYPE: Meme Coins Soar with Bitcoin’s Recovery to $106K"

• FinanceFeeds: "From Memes to Metaverse: The Top Crypto Pre-Sales to Watch Now"