Ethereum drops 6% as ETF outflows and macro pressures mount; key support broken

Fundamental Overview

Ethereum came under heavy selling pressure yesterday, declining by about 5–6%. The move was not triggered by any significant negative development specific to Ethereum. Instead, the selloff was driven by worsening ETF outflows against a broader risk-off backdrop.

US spot Ethereum ETFs saw another substantial day of outflows, extending the withdrawal streak to seven sessions, while heavy long positioning amplified the downside through liquidations.

The macro environment has also become hostile 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.

The key question now is whether the selloff was primarily a leverage flush or the start of a more sustained correction. Continued ETF outflows alongside higher yields would keep pressure on Ethereum, while stabilising flows and a more dovish Fed could help provide a floor.

The focus will remain on US-Iran developments and the Fed. A de-escalation should ease oil prices, Treasury yields and the US dollar, providing some support to Ethereum. A prolonged stalemate with direct military confrontation, on the other hand, will likely keep the cryptocurrency under pressure.

Ethereum Technical View: Daily Chart

On the daily timeframe, Ethereum broke below the major upward trendline and extended losses as sellers piled in, targeting a drop into the 2,360 support next. If price reaches that level, buyers are expected to step in with a defined risk below the next major trendline, positioning for a rally to the 3,400 level. The sellers, on the other hand, will look for a break below that trendline to increase bearish bets toward the 1,900 level next.

Ethereum Technical View: 4-Hour Chart

On the 4-hour chart, Ethereum broke below both the trendline and the 2,630 support yesterday, with sellers piling in at every breakdown. If we get a pullback into the 2,630 resistance, sellers are likely to step in with a defined risk above it, pushing into new lows. The buyers, meanwhile, will look for a break higher to start piling in for new highs, with the downward trendline as the first target.

Ethereum Technical View: 1-Hour Chart

On the 1-hour chart, an upward counter-trendline might form if the price makes a new higher high. The buyers will likely continue to lean on that trendline with a defined risk below it, pushing into the 2,630 resistance, while sellers will look for a break lower to increase bearish bets toward new lows.

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