Ethereum began the week facing sharp downward pressure, retreating swiftly from $2,400 to as low as $2,100 on Monday. The latest data indicates renewed selling momentum, with bearish sentiment dominating price action in the short term.
Exchange selling and ETF outflows intensify
A closer look at trading activity on Binance reveals that most investors are taking positions to sell. As the world’s largest cryptocurrency exchange by trading volume, Binance plays a pivotal role in shaping market trends. On Sunday, over $1.1 billion in aggressive sell orders were executed on its futures platform in just one hour. Such abrupt increases in trading volume during price declines often signal that major market players are reducing risk or that short-term selling pressure is ramping up.
For US-based spot Ethereum exchange-traded funds, outflows have persisted for five consecutive days. The latest reports show that $255 million has been withdrawn from these ETFs. According to CoinShares’ weekly report, global outflows from Ethereum funds reached $249 million—a figure marking the largest weekly withdrawal since the end of January.
Analyst Whale Factor commented that institutional interest in Ethereum “seems to have hit a wall locally,” highlighting the effect of such outflows on the broader market.
These withdrawals from investment products suggest that institutional demand for Ether is experiencing a temporary slowdown, according to industry analysis.
Critical levels tested in technical analysis
TradingView data shows Ethereum hovering near $2,100, reflecting a 12 percent drop from $2,420 recorded on May 6. On Sunday, the cryptocurrency reached $2,090 on the Bitstamp exchange—the lowest level seen since April 17.
CryptoQuant analyst Amr Taha pointed out in his latest research that “high-volume aggressive selling took place on Binance as Ethereum tested key downside levels.”
Another technical indicator highlights that about 3.85 million ETH is held by investors with an average entry price between $2,000 and $2,100. The prevalence of buying in this price band may help slow further declines, at least temporarily, as market participants find value near their cost basis.
Technical analyst Donald Dean warned that “bulls must protect the support zone around $2,100 on the daily chart; otherwise, ETH could fall into a lower price channel.”
Market watchers predict that if Ethereum breaks below $2,000, the price could retreat as far as $1,700.
Investor outlook and strategic moves
Several analysts believe falling below key support could prompt another round of heavy selling for Ethereum. However, if buyers return in the $2,000 region and reinforce their positions above this level, the decline could be contained. The aftermath of last week’s sharp price drop has kept this pivotal area under close scrutiny.
Periods of low-volume trading near support often bring sideways price movement, with a clear direction likely only if both technical and fundamental factors align.
The CEO of Sharplink identified three factors that could drive Ethereum’s price higher: passage of the CLARITY Act in the US, a resurgence of market risk appetite, and an increase in real-world asset tokenization on the Ethereum blockchain.
Experts emphasize that Ethereum could remain under selling pressure in the near future, but renewed buying at key support levels may help the price stabilize in the coming sessions.
