Ethereum was under pressure for the fourth consecutive trading day on Friday, falling to around $1,680, a new low for the year. The market had previously considered $1,825 as one of the key support levels; now that this level has been breached, the $1,600 and $1,500 areas have become the new focus.
Liquidation amplifies downward pressure
This pullback is related to the concentrated liquidation of long positions in the futures market. CoinGlass data shows that the total liquidation volume in the crypto market exceeded $1.2 billion in the past day, and the forced liquidation further amplified the selling pressure, dragging down Ethereum as well.
On the blockchain, approximately 10,422 bitcoins associated with the Mt. Gox legacy were transferred, valued at approximately $739 million according to the article. Although these bitcoins did not directly enter exchanges, the market remains concerned about potential increased supply, leading to a weakening of risk appetite.
ETFs end continuous outflows
The liquidity situation is not entirely without signs of easing. SoSoValue data shows that the spot Ethereum ETF recorded a net inflow of $19.3 million on Thursday, ending a 17-day streak of net outflows.
However, this scale is insufficient to indicate a significant rebound in institutional demand. Earlier this week, the Ethereum ETF still experienced large redemptions, with a net outflow exceeding $519 million on June 2nd alone. Compared to previous outflows, the latest inflow appears more like a temporary halt to the bleeding.
Macroeconomic risks continue to weigh on sentiment.
The macroeconomic environment is also unfavorable for risk assets. WTI crude oil futures remain near $93 a barrel, with a cumulative weekly gain of over 6%. High oil prices have reignited market concerns about inflation.
Against this backdrop, the yield on the 10-year US Treasury bond remained around 4.43%, with funds continuing to flow into assets with more certain returns. Geopolitical tensions also showed no significant easing, and Middle East-related risks continued to fuel market risk aversion.
The area below $1600 becomes the next observation zone.
From a price perspective, after ETH fell below $1825, market attention to the support level below has clearly intensified. The article cites analysts who say that if $1600 is breached, the area around $1500 could become the next important test zone, with a further target of around $1412.
CoinGlass's three-day liquidation heatmap shows a relatively dense liquidation zone between $1900 and $2060 above the current price, while liquidity below the current price is relatively thin, with more significant support only appearing around $1600. This means that if the rebound weakens, the price could still fall more rapidly.
Some analysts have also pointed out that Ethereum's daily RSI is at an extremely low level, indicating a clear short-term oversold condition. However, it is difficult to say that the market has completed a reversal until the price regains the $1825 level and further recovers to higher levels.
