Ethereum Price Crashes Below $2,000 for First Time Since March — How Low Can ETH Go?

Ethereum price fell below $2,000 on May 28, marking its first break under that level since March. The shift came as cryptocurrencies faced growing pressure due to geopolitical uncertainty, outflows from the ETFs, and increased leveraging. ETH dropped 4.48% in 24 hours to $1,989, while its close near $1,987 erased gains from last week’s high of $2,150 on May 22.

Here’s why the Crypto Market is Crashing Today

The crypto market slipped 3.43% to $2.46 trillion as investors moved away from risk assets. The drop came after a report of a U.S. airstrike on an Iranian military facility near the Strait of Hormuz. 

The development triggered concerns of broader Middle East instability, while traders moved to safer trades.

Bitcoin price was also hit as it fell 3.35% to $73,281 during the past 24 hours. That was short of $73,000, placing pressure on top cryptocurrencies on the altcoin segment.

Additionally, XRP, Solana, Dogecoin, and Cardano prices saw substantial drops in trading volume and saw high sell-offs during this time.

The reaction to liquidations was prolonged and detrimental. Leveraged traders had to take the losses as the prices fell significantly. It resulted in additional downward selling pressure and market confidence was lowered.

Ethereum Price Breaks Below $2,000-Here Why

ETH price fell to $2,000, further stoking bearishness after a series of dull ETF days. Ether ETFs have seen net outflows in 11 consecutive trading days, totaling almost $500 million. 

The trend indicates that the institutions have reduced the exposure during the pullback phase in the recent time.

Meanwhile, the amount of ETH futures on the books hit a new record of 16.39 million ETH. A high OP represents high traders interest and also volatility. In this situation, several traders seem to have taken positions short on Ethereum using leverage.

The decline in price has split opinions in the market. Some retail traders might get caught up in FOMO and purchase the dip prematurely. Other people prefer to wait for greater fear to come before them before entering the market.

How Low Can ETH Price Go?

The next step for Ethereum will be reliant on whether there’s more panic selling or less early FOMO. The market may be subdued and dip buyers drawn in with a quick $2,000 recovery. But continuing ETF withdrawals could sustain pressure on the token.

The next support level for Bitcoin also affects Ethereum. A relief bounce to $74,332 is still possible if the future BTC outlook is above $72,650. However, a price break down might lead ETH further down and lure traders to the $1,900 levels.

Technically, ETH has broken below the critical $2,000 support. The RSI is at 31.98 shows it is approaching oversold territory. The next significant support level is the swing low at $1,950 if it can be broken through with continued outflows.

A recovery above the daily pivot at $2,100 would be required to test the 7-day SMA, indicating that bearish momentum may be waning.