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Ethereum price declined more than 4% during the latest market selloff, falling below the $2,000 level for the first time in nearly two months. Weak on-chain activity, persistent ETF outflows, and cautious institutional positioning continued weighing on ETH sentiment.
The decline also followed broader crypto market weakness as traders reduced exposure across major digital assets.
Ethereum Price Slips Under Crucial $2,000 Support
Blockchain analytics firm CryptoQuant reported that on-chain data shows a gradual rise in failed transactions on the Ethereum network. Along with it, there’s a modest uptick in the ETH exchange inflows as well.
According to the analytics firm, ETH price action continues to consolidate within a largely sideways range. CryptoQuant noted that rising network friction, along with a surge in ETH exchange flows, leads to a bearish outlook for ETH price in the near term.
Another popular analyst, Ardi, stated that Ethereum price could face additional downside pressure if the key $1,975 support level fails to hold.
According to the analyst, a breakdown below this support zone could trigger a broader decline toward the lower end of the current trading range near $1,750.
Ethereum Price Remains Shaky Despite Buy The Dip Sentiment
Blockchain analytics firm Santiment reported that ETH price has fallen below the $2,000 level for the first time since March 29. This has triggered a strong reaction from retail traders, across social media.
Santiment noted that before the fall, there was a strong “buy the dip” optimism among retail players. The analysts said that retail traders are increasingly calling for dip buying opportunities following Ethereum’s break below the key psychological support zone.
As per Santiment, strong retail optimism during ETH price declines has historically preceded further downside moves. During the corrective phases, crowd sentiment largely turns bullish.
According to Santiment, once speculative optimism erodes, strong buying opportunities will emerge again.
Ethereum ETFs Bleed For Second Week
Spot Ethereum ETFs have seen consistent outflows for the past 12 trading sessions. On May 27, spot Ethereum ETFs recorded total net outflows of approximately $67.15 million. As per data from Farside Investors, BlackRock’s ETHA saw the largest single-day outflow at roughly $65.10 million.
This shows that the institutional sentiment around ETH is also waning a bit. With ETH price dropping further, it will be interesting to see how long it takes for the institutions to resume buying again.
