The price of Ethereum fell towards the $1,500 level after a wave of prolonged liquidations, continued ETF inflows, and deteriorating macroeconomic conditions, leading to one of the steepest cryptocurrency sell-offs in 2026.
summary
- Ethereum price fell to around $1,500, extending weekly losses to 23% amid a market-wide liquidation event and deteriorating macro conditions.
- Ethereum ETFs saw $540 million in outflows in May, and another $168 million left the funds in early June, adding pressure to prices.
- Analysts warn that a break below $1,400 could expose ETH to a deeper decline towards the $1,000-$1,100 region.
According to data from crypto.news, Ethereum (Ethereum) The price fell more than 10% to an intraday low of around $1,505 on June 6 before settling near $1,540 at press time. This decline increased losses to nearly 23% over the past week and pushed ETH to its lowest level since early 2023 as investors fled risky assets across both cryptocurrency and traditional markets.
The selling accelerated after Bitcoin briefly fell below the key $60,000 support level, triggering a market-wide liquidation event. Derivatives data showed that approximately 78.7% of liquidations during recent sessions came from long positions, while open interest on Ethereum fell by approximately 30%, highlighting a sharp decline in leveraged bullish bets.
At the same time, institutional demand continued to deteriorate. Per SoSoValue DataUS ETFs recorded approximately $540 million in net outflows during May, with another $168 million departing from products during the first week of June. The ongoing withdrawals removed a major source of demand from the spot market and increased pressure on Ethereum as prices fell below several key technical levels.
Macroeconomic conditions added another layer of stress. US labor report stronger than expected Low expectations for interest rate cuts by the Federal ReserveWhile renewed military tensions between the United States and Iran pushed Brent crude towards $97 per barrel.
The rise in oil prices has revived concerns about inflation and prompted investors to move capital into defensive assets and large technology stocks instead of cryptocurrencies.
Prediction market participants also lowered their expectations for Fed easing. Polymarket data recently showed that traders are assigning a roughly 82.2% probability that the Fed will not cut interest rates during the remainder of 2026, a scenario that could keep liquidity conditions tight for risk assets.
Ethereum’s collapse opens the way towards the $1,000 support area
Technical charts show that Ethereum is breaking below the rising support trend line that has served as the basis for several recovery attempts since February. The breakout completed a bearish continuation structure and sent ETH straight towards the $1,550 support area identified by several analysts.
According to cryptocurrency analyst Ali Martinez, Ethereum has already reached its first negative target.
“Ethereum $ETH met my first target at $1,560. Next target: $1,070.”
separate analysis From More Crypto Online argues that Ethereum is still in a larger corrective decline. The company noted that support is located near $1,550 and $1,400, while any recovery attempt is likely to encounter resistance at the broken trend line that previously supported the market.
Momentum indicators continue to favor sellers. The daily MACD remains very negative, while the Aroon shows that bears maintain full control of the prevailing trend. Meanwhile, Ethereum price fell below its 200-day moving average after losing the important psychological level of $1,800 earlier this week.
On-chain activity has weakened along with price action. Ethereum network fees are down nearly 45% from recent highs, while large holders have continued to reduce exposure during the recent decline. The decline in network activity coincides with a decline in speculative demand across the DeFi and financial derivatives markets.
The main risks remain related to leverage, ETF flows and macro conditions
Liquidation data suggests that bearish volatility may continue if Ethereum loses the $1,400 support area. Many analysts have identified the $1,000-$1,100 area as the next major historical demand area should current support levels fail to hold.
Additional pressures could arise from decentralized finance markets. It is estimated that approximately $547 million of lending positions could face liquidation if Ethereum continues its decline, creating another potential source of forced selling.
A recovery scenario for Ethereum would require reclaiming the broken trend line resistance and reclaiming the $1,800 area, which previously served as a key support level. ETF flows also remain critical. Continued institutional withdrawals are likely to limit any attempt at recovery, while the return of inflows could help stabilize market conditions.
Cryptocurrency sentiment remains strongly bearish at the moment. The Cryptocurrency Fear and Greed Index recently fell to 11, its lowest reading in extreme fear territory, underscoring the depth of investor pessimism as Ethereum tests support levels not seen in over two years.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
