Ethereum Traders Warn Bears in Control as ETH Drops Toward $2,000 Support

Ethereum fell sharply after failing to hold resistance near $2,400, sliding as low as $2,100 on Monday. The move marked a 12% drop from the recent peak around $2,420, with traders now saying bears have regained control of short-term price action. The decline also took ETH to its weakest level since April 17, according to Blockto market data.

Binance Selling Pressure and ETF Outflows Hit Demand

CryptoQuant analysis shows aggressive sell pressure building on Binance, the largest crypto exchange by volume. During the drop toward $2,100, taker sell volume surged above $1.1 billion in an hour, signaling heavy short-term distribution and de-risking by traders.

At the same time, US spot Ethereum ETFs recorded five straight days of net outflows totaling about $255 million. Broader Ethereum investment products also saw $249 million in weekly outflows, the largest since January, reinforcing the weakening institutional demand trend.

Key Support Zone Around $2,000 in Focus

Glassnode data suggests roughly 3.85 million ETH is concentrated around the $2,000–$2,100 cost basis range, forming a critical support area. Analysts say this zone could stabilize prices if buyers step in near break-even levels.

However, if ETH fails to hold above $2,000, downside targets around $1,700 are being watched. Traders also note that recovery would require renewed ETF inflows, improved market risk appetite, and stronger demand linked to Ethereum-based tokenization activity.