Ethereum continues to struggle as the price dips below $2,000, with a YTD drop of over 45% amid selling pressure and macro uncertainty.
The weakness comes as Bitcoin fails to maintain key levels amid US-Iran tensions and risk-off sentiment that has weighed on the overall crypto market.
From a technical perspective, ETH’s failure to re-penetrate its 200-week moving average and the psychological $2,000 level has triggered a liquidation of long positions and increased volatility.
Whales and institutional investors are seen selling holdings, while Ethereum spot ETFs have seen significant outflows. This indirectly reflects the cautious sentiment among investors.
On-chain data shows weakening retail sentiment and declining leverage. This could signal a continued risk-off phase.
Furthermore, FOMC minutes and US inflation data are influencing monetary policy expectations, with the market now expecting two Fed rate cuts this year starting in June.
