Ethereum fell sharply over the past week, tumbling more than 10 percent and reaching as low as $2,110. While there were modest gains in the last 24 hours, the overall outlook remains fragile. Most major cryptocurrencies outperformed Ethereum during this period, as surging US Treasury yields triggered a wave of selling across the crypto market.
US bond yields and inflation hit crypto hard
In recent days, the yield on US 30-year Treasury bonds climbed to 5.19 percent, marking its highest level since 2007. Japan’s 10-year government bond yield also hit 2.81 percent, a historic first. These developments have prompted a shift among investors toward safer, income-generating assets, reducing risk appetite and putting increased pressure on digital currencies.
Last week in the crypto market, more than $700 million in long positions were liquidated on the Ethereum side, with Bitcoin also seeing significant liquidations, though Ethereum faced larger overall volumes.
As investors rushed to unwind leveraged trades during this wave of high-volume selling in derivatives markets, technical indicators signaled growing downward pressure for Ethereum over the near term.
Blockchain data shows major withdrawals from larger wallets
According to analytics platform CryptoQuant, wallets holding between 100 and 10,000 ETH moved a total of 386,000 ETH between May 11 and May 18. Similar selling had been observed in previous months as well, suggesting ongoing unease among substantial holders.
Whale wallets—which control significant amounts of cryptocurrency—initially bought 330,000 ETH during the decline, but quickly saw net outflows of 60,000 ETH. This rapid reversal signals a lack of confidence in current price levels.
Analyst Ali Charts reported that about 60 large wallets, each with over 10,000 ETH, have either completely emptied or substantially consolidated their holdings in the past two months. With large amounts of ETH moving onto exchanges, there is an increased likelihood the price could slip below the critical $2,000 mark.
Glossary: A whale in the crypto market refers to a wallet holding large quantities of coins and often has considerable impact on price movements. Whale activity is closely watched as an indicator of market sentiment.
Technical analysis: Downward pressure remains
On the daily chart, Ethereum’s price is trading below its 20, 50, and 100-day exponential moving averages (EMA), all ranging from $2,245 to $2,333. The Relative Strength Index (RSI) is at 34, and the Stochastic Oscillator reads 12—both suggesting continued selling pressure and an absence of clear reversal signals in the short term.
Crypto analyst Crypto Patel shared on social media that the upward trendline at $2,170 has been broken, and unless the price reclaims this level, $1,500 could become the next major target. If current structures fail, he added, $2,327 would serve as a new invalidation point.
In the near future, resistance can be found at $2,120 and $2,150, while support sits at $2,085 and $2,075. Psychologically, the $2,000 mark remains a critical level to watch for further downside risk.
| Index | Value | Comment |
|---|---|---|
| Price | $2,108 | Current trading level |
| RSI | 34 | Near oversold territory |
| Stochastic | 12 | Flat movement, weak chance of short-term rebound |
| Resistance (first/second) | $2,120 / $2,150 | Levels to break in the short term |
| Support (first/second) | $2,085 / $2,075 | Further declines likely if breached |
As of May 20, Ethereum continues to hover just above $2,108. Both on-chain and technical analyses indicate that caution among investors is set to persist in the coming days, with ongoing scrutiny of whale activity and major support zones.
