- Ethereum has dipped below $2,500 with bearish indicators signaling a possible drop toward the $2,000 support level.
- Despite retail selling pressure, strong institutional inflows into Ethereum ETFs suggest continued confidence in its long-term potential.
Ethereum Under Pressure: Can the Bulls Hold the Line?
Ethereum has slipped below $2,500, triggering fresh concerns among traders and investors. With bearish momentum gaining steam, many are now asking: is Ethereum heading toward the dreaded $2,000 mark? The altcoin has struggled to stay afloat, especially with Bitcoin flirting dangerously close to the $105,000 level—a key psychological barrier for the entire crypto market.
Technical Indicators Flash Warning Signs
A closer look at Ethereum’s daily chart reveals an ongoing sideways trend despite a sharp 7% drop on Thursday. While ETH momentarily recovered and climbed back above the 200-day EMA at $2,461, that bounce seems fragile. The price now hovers around the 38.2% Fibonacci retracement level near $2,400—an area acting as temporary support.
However, weakening technicals signal a potential breakdown. The Relative Strength Index (RSI) is trending downward toward the midpoint, and a bearish divergence is forming—often a precursor to deeper downside. If ETH closes below the $2,400 mark, it could tumble toward $2,000, near the 23.6% Fibonacci level.
Intermediate support at the 50-day and 100-day EMAs ($2,357 and $2,319, respectively) could offer some protection. Still, bullish momentum must return quickly to prevent further damage, with resistance looming at $2,699, the 50% Fibonacci retracement level.
Long Liquidations and Bearish Sentiment Dominate
Ethereum derivatives data reveals clear bearish dominance. Over the past 24 hours, long liquidations surged to $26.89 million, wiping out leveraged bullish positions. The long-to-short ratio now stands at 0.97, signaling a slight edge for short sellers. Open interest has dropped to $34.42 billion, and the funding rate has plunged from 0.0070% to 0.0026%—a red flag for bulls.
Institutions Remain Bullish on Ethereum
Despite retail weakness, institutional investors are quietly accumulating. U.S. spot Ethereum ETFs have recorded 15 straight days of inflows, totaling more than $837 million. On June 6 alone, BlackRock led the charge with a $15.86 million inflow, followed by $9.37 million from Grayscale.
While the short-term outlook appears shaky, ETH long-term prospects remain bolstered by growing institutional interest. The next few days will be critical—can Ethereum hold the line, or is a $2,000 test inevitable?
