📉 Top 5 Reasons Ethereum Price Is Down Today
Ethereum is trading near $1,976, extending its yearly decline to over 45%. Here are the five key reasons behind today’s drop:
1⃣ Broader Crypto Market Selloff
$ETH is moving in sync with Bitcoin, which has struggled to hold key levels amid risk off sentiment. Escalating US Iran tensions and macro uncertainty have weighed heavily on the entire crypto market.
2⃣ Weak Technical Structure
Ethereum failed to reclaim the 200 week moving average near $2,450 and continues to struggle below $2,000. Multiple rejections at this psychological level triggered long liquidations and choppy trading.
Key support to watch sits around $1,850 to $1,900.
3⃣ Whale and Institutional Selling
Large holders have been offloading ETH. ETF flows also show weakness. Spot Ethereum ETFs recorded over $41 million in net outflows recently, with BlackRock’s ETHA seeing the largest withdrawal.
4⃣ Bearish On Chain Signals
Sentiment metrics show declining retail interest. Data from CryptoQuant and Santiment indicate falling leverage ratios and worsening sentiment, pointing to reduced speculative demand.
5⃣ Hawkish FOMC Minutes
The latest Federal Reserve minutes revealed division among policymakers on rate cuts. With inflation still a concern, rate uncertainty continues to pressure risk assets like crypto.
🔎 What’s Next?
Ethereum must reclaim and hold above $2,000 to regain bullish momentum. Failure to defend current levels could open the door toward the $1,850 zone.