Ethereum is under heavy pressure after dropping around 25% in a week and falling below the $2,300 level. A major reason is aggressive selling caused by large liquidations, with over $200 million in long positions wiped out in a very short time. At the same time, most Ethereum ETFs are seeing strong outflows, showing weak institutional demand.
Another negative factor is the fading Layer-2 narrative. Expectations that L2 solutions would quickly fix Ethereum’s scaling issues are cooling down, and even core developers admit progress is slower than hoped. This has forced the market to rethink Ethereum’s growth story.
Unlike 2018, this is not a full ecosystem collapse but a correction after a long rally combined with changing sentiment. For now, Ethereum remains weak, with the $2,200 level acting as key support. Until selling pressure and ETF outflows slow down, the short-term outlook stays cautious.
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