After Ethereum fell below the $2,000 mark, market attention quickly shifted to support levels. Continued outflows from spot ETFs, weakening spot buying in the US, and safe-haven demand stemming from the Middle East situation are all simultaneously weighing on ETH's performance.
ETF outflows drag down sentiment
As of press time, ETH was trading at approximately $1990, marking its first drop below $2000 in several months. The report indicates that increased selling pressure in the US market was one of the key triggers for this downward move.
The Coinbase premium, a measure of the strength of domestic buying and selling pressure in the US, has turned negative, meaning that the price of ETH on Coinbase is weaker than on offshore exchanges. This typically indicates that US investor selling is stronger than global buying, weakening support around $2,000.
According to SoSoValue data, Ethereum spot ETFs saw a net outflow of $241 million over the past week, with a cumulative outflow of approximately $540 million over the past month. Compared to the inflows earlier this year, the current liquidity situation has clearly weakened.
$1900 to $1825 are in focus
From a technical perspective, ETH has broken below the lower edge of the descending channel that has been in place since January of this year, and has also fallen below the important retracement level of around $2,100, before further breaking through the psychological level of $2,000.
With this structure broken, the $1825 level near the February lows has become the next key support level to watch. The previous lower channel line, around $2100, has now turned into upper resistance.
The report also mentioned that ETH is currently trading below its 20-day, 50-day, and 200-day moving averages, with a continuous resistance zone forming between $2,100 and $2,400. If the price cannot regain its footing in the $2,000 to $2,100 range, the bearish pressure will remain difficult to alleviate significantly.
Liquidation zone overlaps with macroeconomic risks
CoinGlass's liquidation heatmap shows a significant concentration of liquidity and leveraged positions around the $2100 to $2150 level. If ETH rebounds and recovers its losses, this area could become a short-term retest target.
Below the current price, there are also clear liquidation zones around $1950 and $1900. If these supports continue to be breached, forced liquidation could further amplify the decline and push the $1825 to $1800 area back to the forefront of the market.
In addition to internal factors within the cryptocurrency market, the report also mentioned that changes in the US-Iran situation and rising oil prices are fueling inflation concerns and weakening market expectations for a near-term interest rate cut by the Federal Reserve. Industry data shows that digital asset investment products saw an outflow of approximately $2.8 billion over the past week, reflecting a more cautious investor sentiment.
