Ethereum (ETH-USD) Struggles as Selling Pressure Mounts
Ethereum (ETH-USD) is experiencing a sharp downturn, dropping 11.26% in 24 hours and erasing its weekend gains. Trading at $2,094, ETH is now 31.53% lower over the past month, signaling a deepening bearish trend. The rapid decline follows a surge in selling pressure, institutional outflows, and growing market uncertainty.
Despite the market-wide panic, ETH is holding above the $2,000 psychological support, a key level that could determine its next move. If Ethereum loses this level, it could trigger a cascading sell-off toward $1,800 and even $1,600, a scenario analysts are closely watching.
Key Technical Indicators Flash Warning Signs for ETH-USD
Ethereum’s price action is closely tied to key moving averages, which have turned increasingly bearish. The 20-day and 50-day SMAs indicate that ETH has lost short-term momentum, while the 100-day and 200-day SMAs suggest an extended downtrend. Trading below these levels is a bearish signal, and unless ETH regains footing above $2,200, the outlook remains weak.
The RSI currently sits in the mid-40s, reflecting neutral momentum. However, with price weakness persisting, ETH is at risk of entering oversold conditions. Meanwhile, the MACD has confirmed a bearish crossover, a clear indication that selling pressure is still dominant. Unless ETH sees renewed buying, further downside could be ahead.
Ethereum Volume Declines as Institutional Investors Exit
Trading volume is a crucial factor in confirming price trends. While ETH’s 11.26% drop has seen moderate volume, the 31.53% monthly decline suggests ongoing selling pressure. Institutional outflows have been particularly severe, with Ethereum-based ETFs shedding $335 million in the past week alone.
BlackRock’s iShares Ethereum Trust (ETHA) saw $164 million in withdrawals, wiping out 38.6% of its value since early 2025. This exodus is a strong bearish signal, showing that large investors are pulling out amid growing uncertainty. Ethereum ETFs are now down 40% from their launch, further eroding confidence in the market.
Ethereum Faces Major Resistance and Support Levels
The $2,000–$2,050 range is a key support zone that ETH must hold to avoid a deeper correction. If buyers defend this level, Ethereum could attempt a rebound toward $2,200–$2,300. A breakout above $2,400 would be a bullish confirmation, signaling a potential recovery.
However, failure to hold $2,000 would expose ETH to $1,800, with the next critical support at $1,640. If selling pressure continues, ETH could even test $1,600, marking its lowest level since 2023.
Market Sentiment Weakens as Ethereum Faces Macro Pressures
Ethereum’s struggles aren’t just technical; macroeconomic factors are also weighing heavily on the market. Rising global uncertainty, Trump’s new tariffs on Mexico and Canada, and fears of a prolonged economic slowdown have contributed to Ethereum’s losses.
Trade tensions have fueled a risk-off sentiment, pushing investors away from speculative assets like cryptocurrencies. Meanwhile, ETH supply on exchanges hit a 12-month high, signaling that major holders are liquidating their positions.
Adding to the bearish outlook, massive liquidations in the derivatives market have exacerbated the decline. Over $209 million in long positions were liquidated in 24 hours, further accelerating the sell-off.
Can Ethereum (ETH-USD) Rebound, or Is $1,600 Inevitable?
For Ethereum to reverse its downward trajectory, it must reclaim $2,200–$2,400 and see a surge in volume. A move above these levels could reignite bullish momentum, with a target of $2,800 in the coming weeks.
On the downside, a break below $2,000 would confirm further losses, with ETH likely testing $1,800 and $1,600. Given the current bearish momentum, investors should prepare for heightened volatility.
With ETH down 35% year-to-date, traders are watching closely. Will Ethereum (ETH-USD) stage a comeback, or is a crash to $1,600 the next move?
