Ether (ETH) tumbled to $1,814 on Wednesday, marking its lowest point in the last 14 weeks and sparking mounting uncertainty about whether the price can hold above the crucial $1,800 liquidity zone. As questions swirl over ETH’s ability to sustain support at current levels, the possibility of an even sharper correction is gaining traction among market watchers.
Technical pressure intensifies
Slipping beneath the formerly robust support lines at $2,000 and $2,200, ETH’s technical outlook has taken a decisive hit. The daily chart reveals major moving averages clustering within this band, making the loss of this region stand out starkly to traders and analysts alike.
According to Bitstamp data, Ether’s price plummeted to $1,814 intraday, pulling its daily relative strength index (RSI) down to 25—the lowest reading since February 6. This pattern underscores persistent downward pressure and signals that ETH has entered highly oversold territory, a warning sign for potential further declines.
Yet, extreme oversold readings can also portend that sellers may be exhausting their strength. Some market participants point out that a recovery similar to the 39% rebound seen in February cannot be ruled out, keeping hopes for a counter-move alive despite bearish signals.
Analyst Ted Pillows noted that ETH nearly touched $1,800 during the day, cautioning that a drop below this support could put areas under $1,700 in play for the next leg downward.
Harsher scenarios for a sub $1,800 Ethereum
Some analysts stress that maintaining the ETH/USD pair above $1,800 is imperative for preserving any bullish outlook. CrypDoMillions suggests that a failure to hold this level could pave the way for a decline toward $1,600, highlighting just how critical this threshold is for market sentiment.
More pessimistic voices draw attention to the weak demand zone below $1,800. Data from the Entity Adjusted UTXO Realized Price Distribution reveals that between $1,800 and $1,250, ETH trades in an area of relatively shallow demand. If selling pressure deepens further, price action could sink toward the lower boundary around $1,200, where over 1.4 million ETH has been accumulated by investors looking for a long-term floor.
The cost basis heatmap confirms there has been little accumulation in the $1,200 to $1,800 band, reinforcing the idea that these lower levels could be tested again in the short term if bearish momentum continues.
US demand fades as ETF outflows mount
The Ethereum Coinbase Premium Index, which tracks the price difference for ETH between Coinbase and Binance, dropped sharply to minus 0.16 on May 28 before slightly recovering to minus 0.13. Such a negative reading signals intensifying selling pressure emanating largely from US-based investors.
For context, the Coinbase Premium Index gauges whether a cryptocurrency is trading at a premium or a discount on Coinbase compared to other global exchanges. Extended negative values often indicate weak spot demand from US investors in particular.
Crypto investor Thomas The Trader observed that the Premium Index had fallen deep into discount territory, a sign that spot demand may be weakening further in the American market.
The persistent outflows from US-listed spot Ethereum ETFs add fuel to these concerns. These funds have now seen daily net outflows for 16 consecutive trading days—the longest losing streak since March 2025. According to SoSoValue data, total withdrawals have reached an eye-catching $847.2 million during this period.
Last week alone, global Ethereum investment products also saw outflows totaling $257.3 million. The data reflect that institutional selling pressure remains strong and may continue weighing on ETH prices over the near term.
