Ethereum collapses below $2,000! Over $600 million in institutional funds withdrawn

▲ Ethereum (ETH) ©

Ethereum (ETH) has given up its psychological support level of $2,000, heightening market caution. As institutional fund outflows from Ethereum spot ETFs have continued for 13 consecutive trading days, combined with liquidation volumes and the breakdown of technical support levels, short-term downward pressure has intensified.

According to cryptocurrency market data aggregator CoinMarketCap on June 1 (local time), Ethereum traded at $1,996.18, down 1.67% over the past 24 hours. This decline is steeper than Bitcoin's (BTC) 0.91% drop during the same period. The media cited the continuous net outflow from Ethereum spot ETFs and the breach of the key $2,000 support level as the core reasons for Ethereum's weakness.

Ethereum spot ETFs saw net outflows for 13 consecutive trading days, with cumulative outflows reaching $694 million. Furthermore, withdrawals of 9,000 ETH were confirmed on May 29, indicating that weakening institutional investor demand is hindering price recovery. The media analyzed that this institutional selling pressure is increasing market sell-offs, directly burdening the ETH price.

Liquidation volumes also exacerbated the decline. ETH accounted for the largest share in liquidation volume on a 4-hour basis, at $7.68 million. Technically, it also fell below the $2,010 support level and the 100-hour moving average, triggering automatic stop-losses and liquidation of leveraged positions. The Relative Strength Index (RSI) approached oversold territory at 31.66, but bearish momentum still persists.

A short-term key observation point is whether the $1,965 support level can be defended. If Ethereum holds above this range, a sideways correction within the $1,965-$2,020 box range is possible. Conversely, if it closes below $1,965 on a daily basis, there is a forecast that it could quickly fall to the next major support level of $1,850. In particular, the US employment report scheduled for June 5 is identified as a major macroeconomic variable that could affect risk asset investor sentiment.

The market structure still leans bearish. The media diagnosed that downward pressure would prevail until Ethereum recovers the $2,030-$2,050 resistance zone. Ultimately, whether ETH can hold $1,965 within the next 24-48 hours will be a critical turning point in determining whether it retests $1,850.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*