Ethereum is under intense selling pressure after extending its decline for a fifth consecutive day, raising concerns that the price could slip below the critical $2,000 level. The asset recently touched an eight-month low near $2,170 before attempting a modest stabilization, but broader market signals remain fragile.
Why Ethereum Is Facing Heavy Selling Pressure
One of the main drivers behind the downturn is a wave of forced liquidations. As key support levels broke, leveraged long positions were rapidly wiped out, adding significant sell pressure to the market. Ethereum alone accounted for more than $200 million in long liquidations within 24 hours, highlighting how aggressively bullish traders were positioned before the drop.
At the same time, large holders have been reducing exposure. Wallets holding tens of thousands to over a million ETH have reportedly offloaded substantial amounts over the past week, compounding downside momentum. Institutional sentiment has also weakened, with Ethereum investment products recording notable weekly outflows.
Macroeconomic Factors Weigh on Risk Assets
Broader macro uncertainty has further dampened risk appetite. Expectations of tighter U.S. monetary policy and political uncertainty have pushed investors away from speculative assets, including cryptocurrencies.
From a technical perspective, Ethereum has confirmed multiple bearish chart patterns on the daily timeframe. Momentum indicators remain weak, and although the RSI suggests oversold conditions, any short-term bounce could face strong resistance. If selling pressure continues, the $2,000 psychological support remains at risk in the near term.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.