Ethereum Price News: Drop to $1.6K on the Table If ETH Long-Standing Support Falters

Author: Alejandro Arrieche

Published: June 04, 2026

Key Points

• Crypto long liquidations spike beyond $3 billion as market sentiment sours.
• ETH would invalidate a bullish signal that has worked flawlessly for 8 years if it dips below $1,800.
• The next stop for ETH, in the event of a bearish breakout, would be $1,600. However, we still believe we are near this cycle’s bottom.

Market Overview

Ethereum (ETH) has experienced a significant decline of 25% over the past 30 days, particularly after breaking below the $2,000 threshold. In just three days, over $3.2 billion in crypto long positions have been liquidated, reflecting a souring market sentiment exacerbated by geopolitical tensions, including threats from President Donald Trump to increase tariffs on over 60 countries.

Market Sentiment

The Crypto Fear and Greed Index has dropped to Extreme Fear for the first time since March, indicating a rapid shift in investor sentiment. Additionally, there have been 12 consecutive days of outflows from exchange-traded funds (ETFs) linked to Ethereum, further confirming a strong risk-off move in the market.

Technical Analysis

Ethereum is currently retesting a critical support level at $1,800, which has historically been a strong buy signal based on the Relative Strength Index (RSI). This signal has a 100% win ratio in the past three occurrences. If ETH fails to maintain this level, it could lead to a significant drop to $1,400, representing a potential downside risk of 22%.

Future Scenarios

If the $1,800 support holds, a rally to $2,400 is anticipated, with a longer-term target of $6,000 within the next 12 to 18 months. Conversely, if the support fails, the price could drop to $1,600, marking a critical juncture for investors.

Current Trading Activity

Currently, trading volumes are high at $31 billion, accounting for 14% of ETH’s circulating market cap. A strong rally in the next few days could confirm the validity of the historical pattern, potentially leading to a significant price increase.

Conclusion

Ethereum is at a pivotal point, with the potential for both significant gains and losses depending on its ability to hold key support levels. Investors are advised to monitor market conditions closely as the situation develops.