Ethereum (ETH) fell below $2,000, a level it had held since May 2025, showing strong weakness in the market, The Kobeissi Letter posted on X. ETH is now down about 32% since the start of the year (YTD), highlighting how big the overall fall has been. The drop happened on Thursday, when ETH sold off sharply during the day. Traders said ETH broke price levels that were protected for many months, which increased fear in the market.
Once ETH slipped below $2,000, selling became faster and stronger because this level is very important psychologically. What started as a slow fall turned into a heavy intraday sell-off, hurting investor confidence. The fall pushed ETH back to price zones many investors hoped would never return, as stated by Swikblog. Market tension was already high due to weak global risk sentiment, making the timing of the drop worse.
When prices stay below these averages, short rallies usually fail quickly. This shows that sellers are still in control of the market. Chart projections suggest ETH could fall another 25% from recent highs if the pattern fully plays out. This could push ETH into the $1,650–$1,700 range, last seen in late 2023. Analysts say such targets are not certain, but traders are taking them seriously due to strong downside momentum. On-chain data is not giving much hope for a fast recovery. Data shows many ETH holders are now sitting on unrealised losses.
A strong move above $2,100 would be needed to reduce bearish pressure. Until that happens, caution is expected to dominate the market. Ethereum has seen deep corrections before and later recovered, but the short-term outlook remains weak. Analysts say volatility is back, with sellers holding the upper hand for now. ETH is currently hovering near $1,994, its first major support level.
Many investors are now selling more, adding pressure on Ethereum. This selling may continue in the short term but could help build a stronger base later. On-chain data shows buying momentum from the past two weeks is fading. Exchange net position data shows shrinking inflows, meaning accumulation is slowing. As buying slows, sellers often step in, which weighs further on price. Despite weakness, some long-term indicators show possible future opportunity.
ETH’s MVRV ratio has entered a historical “opportunity zone” between -12% and -24%. In past cycles, ETH often rebounded after entering this zone. Loss-heavy conditions reduce selling as investors avoid locking in bigger losses. ETH was trading near $2,211 recently and remains close to key supports. The token has fallen about 27% in five days, showing strong downward momentum.
ETH is now less than 10% away from falling below $2,000, making the risk very real. If prices fall further, some long-term investors may step in to buy at lower levels. A rebound depends on fresh demand near support zones. Failure to stabilize could push ETH toward $1,796 or lower, delaying recovery.
Ethereum fell due to strong selling pressure, weak market sentiment, and technical breakdowns on price charts.
Q2. What could happen if ETH stays below $2,000?
If ETH stays below $2,000, prices may drop further as traders look toward lower support levels.
Once ETH slipped below $2,000, selling became faster and stronger because this level is very important psychologically. What started as a slow fall turned into a heavy intraday sell-off, hurting investor confidence. The fall pushed ETH back to price zones many investors hoped would never return, as stated by Swikblog. Market tension was already high due to weak global risk sentiment, making the timing of the drop worse.
ETH warning signs
Technical warning signs were visible even before this fall. ETH formed an inverse cup-and-handle pattern on long-term charts, which often signals more downside ahead. The breakdown started after ETH failed to stay above $2,960, which was earlier support. That $2,960 level has now turned into resistance, meaning prices struggle to rise above it. ETH is trading below key moving averages like the 20-day and 50-day averages, which is a bearish sign.When prices stay below these averages, short rallies usually fail quickly. This shows that sellers are still in control of the market. Chart projections suggest ETH could fall another 25% from recent highs if the pattern fully plays out. This could push ETH into the $1,650–$1,700 range, last seen in late 2023. Analysts say such targets are not certain, but traders are taking them seriously due to strong downside momentum. On-chain data is not giving much hope for a fast recovery. Data shows many ETH holders are now sitting on unrealised losses.
Global market pressure builds
ETH’s weakness is also linked to a fragile global market environment. Cryptocurrencies often move with tech stocks, and worries about overvalued growth assets are hurting sentiment. A sharp fall in global equities could increase volatility in crypto markets. Right now, $2,000 is the key level everyone is watching closely. If ETH fails to move back above $2,000, focus may shift to support near the mid-$1,700s, as per Swikblog.A strong move above $2,100 would be needed to reduce bearish pressure. Until that happens, caution is expected to dominate the market. Ethereum has seen deep corrections before and later recovered, but the short-term outlook remains weak. Analysts say volatility is back, with sellers holding the upper hand for now. ETH is currently hovering near $1,994, its first major support level.
ETH selling pressure continues
A daily close below $1,994 could confirm further downside. If this support breaks, ETH could slide into the mid-$1,900s quickly. Recent volatility has also changed how traders and media focus on ETH. Attention is now centered on downside risks, key price levels, and technical signals. Ethereum has dropped sharply in recent sessions, shaking investor confidence across the market. ETH has lost a large amount of value in a short time, increasing fear-based selling.Many investors are now selling more, adding pressure on Ethereum. This selling may continue in the short term but could help build a stronger base later. On-chain data shows buying momentum from the past two weeks is fading. Exchange net position data shows shrinking inflows, meaning accumulation is slowing. As buying slows, sellers often step in, which weighs further on price. Despite weakness, some long-term indicators show possible future opportunity.
ETH’s MVRV ratio has entered a historical “opportunity zone” between -12% and -24%. In past cycles, ETH often rebounded after entering this zone. Loss-heavy conditions reduce selling as investors avoid locking in bigger losses. ETH was trading near $2,211 recently and remains close to key supports. The token has fallen about 27% in five days, showing strong downward momentum.
ETH is now less than 10% away from falling below $2,000, making the risk very real. If prices fall further, some long-term investors may step in to buy at lower levels. A rebound depends on fresh demand near support zones. Failure to stabilize could push ETH toward $1,796 or lower, delaying recovery.
FAQs
Q1. Why did Ethereum fall below $2,000?Ethereum fell due to strong selling pressure, weak market sentiment, and technical breakdowns on price charts.
Q2. What could happen if ETH stays below $2,000?
If ETH stays below $2,000, prices may drop further as traders look toward lower support levels.