Ethereum experienced a sharp 6.23% decline over the past 24 hours, significantly underperforming the broader cryptocurrency market, which dipped just 1.83%. This drop is part of a steeper 20.4% weekly slide, driven by a confluence of deleveraging pressures, institutional risk management, and technical breakdowns. The sell-off intensified as macro uncertainties—particularly escalating U.S.–Iran tensions—triggered a wave of risk-off sentiment across digital asset markets.
A major catalyst was a cascade of liquidations totaling $1.1 billion in ETH alone, contributing to a $2.5 billion crypto-wide deleveraging event. This panic-driven unwind pushed perpetual futures funding rates on Binance into deeply negative territory at -0.028%, reflecting aggressive short positioning and forced closures of leveraged long positions. The resulting feedback loop exacerbated price declines, pushing Ethereum to levels not seen since early 2026, with some reports noting a dip below $2,300
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. Institutions holding ETH at higher cost bases have faced mounting unrealized losses, further incentivizing exposure reduction.
This dynamic was exemplified by Trend Research’s strategic move to sell 30,000 ETH—worth approximately $70 million—to repay loans and deleverage its portfolio. While this sale added immediate downward pressure, the firm retained a substantial 626,000 ETH, signaling continued long-term confidence despite near-term caution. Nevertheless, such actions highlight the fragility of institutional holdings amid ETH’s 40% drawdown from peak levels, turning former support zones into formidable resistance.
Technically, Ethereum’s price structure has deteriorated markedly. The breach of the critical $2,780–$2,800 support cluster activated widespread stop-loss orders and bearish momentum indicators. The 7-day Relative Strength Index (RSI) plunged to 14.04, deep into oversold territory, while the MACD histogram widened to -77, confirming accelerating downside velocity. Although such extreme readings often precede short-term relief bounces, the path to recovery remains blocked unless ETH can reclaim the $2,500 level to invalidate the current bearish setup. Immediate support now lies in the $2,200–$2,400 range, coinciding with the 78.6% Fibonacci retracement of its prior uptrend.
In summary, Ethereum’s recent plunge stems from a perfect storm of macro-fueled liquidations, institutional deleveraging, and violated technical supports. While oversold conditions may invite a temporary rebound, sustained recovery hinges on either a de-escalation of geopolitical risks or a resurgence in spot ETF inflows. Market participants are now closely watching whether ETH can hold above the $2,224 swing low, especially as spot trading volume contracts by 14.2% to $41.9 billion—a sign of waning conviction among buyers.