Ethereum Price News: Long Squeeze Will Likely Push ETH $1,800 – Here’s Why We Are Still Bullish

Author: Alejandro Arrieche

Published: June 02, 2026

Key Points

• Ethereum (ETH) has dipped below $2,000, with long liquidations in the crypto market reaching $1.35 billion.
• Geopolitical tensions, particularly between the U.S. and Iran, are escalating.
• A retest of the $1,800 support level is expected, followed by a potential rally in the next 3 to 6 months.

Market Overview

Ethereum has experienced a significant decline of nearly 5% in the past 24 hours, coinciding with one of the largest single-day liquidations in the crypto market. Data from CoinGlass indicates that $1.35 billion worth of long positions were liquidated during this period.

Market Sentiment

The recent downturn in Ethereum's price can be attributed to a combination of factors, including a notable sale of Bitcoin by Strategy, which has contributed to a souring market sentiment. Ethereum ETFs have seen a continuous outflow of funds for over 12 days, totaling more than $600 million. The Fear and Greed Index is currently at 26, indicating "Extreme Fear" among investors.

Macroeconomic and Geopolitical Factors

Geopolitical tensions are exacerbating the situation, particularly with stalled negotiations between the U.S. and Iran. President Trump has expressed indifference towards Iran's actions, while Tehran has threatened to block the Strait of Hormuz, raising concerns about potential military escalations.

On the economic front, the JOLTs Jobs Opening survey for April exceeded expectations, reporting 7.62 million job openings compared to the anticipated 6.88 million. This strong economic data diminishes the likelihood of a rate cut in the near term, further impacting risk assets like cryptocurrencies negatively.

Technical Analysis

From a technical perspective, the weekly Relative Strength Index (RSI) has been signaling a potential buy opportunity if Ethereum drops to the $1,800 level. Historical data suggests that every time the RSI dipped below 30, the market has reached a cycle bottom. This pattern has shown a 100% win rate for Ethereum over the past eight years, indicating a strong likelihood of a price rally following a retest of this support level.

The long-term price target for Ethereum is projected to be between $5,400 and $6,000, based on its performance in previous cycles.

Conclusion

Despite the current bearish sentiment and market conditions, historical patterns suggest that Ethereum may experience a significant rally in the coming months, particularly if it successfully retests the $1,800 support level.