Ethereum dropped 5–6% in a single day as a seventh straight session of ETF outflows combined with heavy long positioning to trigger liquidations. The decline came alongside a broader risk-off move tied to rising oil prices, higher Treasury yields and a stronger dollar.
ETF outflows and leverage drive the drop
Ethereum fell around 5–6% yesterday without a specific Ethereum-related trigger. Instead, deteriorating ETF flows combined with a broader risk-off environment to pressure the asset.
US spot Ethereum ETFs recorded another significant day of outflows, extending the withdrawal streak to seven sessions. Heavy long positioning amplified the downside through leverage-driven liquidations.
Macro backdrop adds pressure
The macro environment has also turned more challenging for crypto. Rising oil prices amid renewed US-Iran escalation risks are pushing Treasury yields higher and keeping rate hike expectations steady, while a stronger dollar adds further pressure on risk assets.
Whether the selloff was primarily a leverage flush or the start of a more sustained correction remains an open question. Continued ETF outflows alongside higher yields would keep the pressure on Ethereum, while stabilizing flows and a more dovish Fed could help provide a floor.
Technical levels in focus
On the daily chart, Ethereum broke below its major upward trendline, with sellers targeting a drop into the 2,360 support level next. If the price reaches that level, buyers could step in to position for a rally toward 3,400. A break below the trendline, however, would likely increase bearish bets toward the 1,900 level.
On the four-hour chart, Ethereum broke below both the trendline and the 2,630 support yesterday, with sellers piling in at every break.
Upcoming catalysts include comments from Fed's Waller and the latest US jobless claims figures, followed by the University of Michigan Consumer Sentiment survey. US-Iran developments and Fed signals will stay in focus: de-escalation could ease oil prices, yields and the dollar, offering Ethereum some support, while a prolonged standoff would likely keep the cryptocurrency under pressure.
Source: Investinglive RSS Breaking News Feed
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