Key Insights:
- Ethereum drops below $2,000 as crypto market loses $1.2 Trillion.
- ETF investors sell, while exchange outflows suggest retail accumulation.
- Analyst predicts 18% ETH move amid market volatility and liquidations.
Ethereum (ETH) price has dropped below the $2,000 psychological level. As other crypto markets faltered, this prolonged its multi-month downturn. The cryptocurrency has lost over 50% of its value since December 18, mirroring a $1.2 Trillion decline across the sector.
Market sentiment remained bearish despite increased ETH exchange outflows, which are typically bullish. Some investors bought the dip. At the same time, institutional players continued selling. This further contributed to sustained downward pressure.
Ethereum Price Struggles as Buy-the-Dip Demand Rises Amid Exchange Outflows Surge
Ethereum price was down 2% on Monday. Moving ahead, it struggled to hold above $2,000 despite increased buying activity from crypto-native traders.
Data from IntoTheBlock showed that last week saw ETH’s highest net outflows from exchanges since December 2022. This totaled approximately $1.8 Billion.
“Despite ongoing pessimism around Ether prices, this trend suggests many holders see current levels as a strategic buying opportunity,” IntoTheBlock analysts wrote in an X post.
Supporting this trend, over 600,000 ETH left centralized exchanges last week. That added to speculation that long-term investors remain confident in Ethereum’s fundamentals.
However, the market remains under pressure as exchange-traded fund (ETF) investors reduce their exposure.
According to Coinglass, U.S. spot ETH ETFs recorded a net outflow of $94 Million last week. Unlike exchange outflows, ETF outflows indicated increased selling pressure from institutional players.
Macro Risks and Institutional Selling Weigh on ETH
The latest downturn in Ethereum price came amid broader macroeconomic instability. The S&P 500 has fallen over 450 points since reaching an all-time high on February 19. This further reflected increased risk-off sentiment.
President Donald Trump’s recent tariff policies on U.S. trading partners have fueled uncertainty. This further impacted both equities and crypto markets. With institutional investors exposed to both sectors, ETH prices remain vulnerable to traditional market volatility.
The Kobeissi Letter noted that market sentiment is shifting sharply. That led to deep red days and heightened volatility. “Crypto markets have lost $1.2 Trillion in three months,” the newsletter stated, underlining the severity of current conditions.
Analyst Warns of an 18% Ethereum Price Move Amid Bearish Setup
According to crypto analyst Ali Martinez, Ethereum price was consolidating within a descending triangle. It is a pattern that historically signals trend continuation. Given ETH’s current bearish trajectory, a breakdown could push prices toward $1,900 or even $1,875.
Martinez also highlighted that $230 Million in ETH long positions were liquidated on Sunday, contributing to the recent dip below $2,000.
However, a breakout above $2,150–$2,200 could invalidate the bearish outlook. If Ethereum price moves above resistance, it could trigger a short squeeze. This could further send the price toward $2,300–$2,400.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
