Ether is showing increasing signs of weakness after dropping below the key $2,000 psychological support level, raising the risk of further downside in the coming weeks.
$ETH is currently trading around $1,975, reflecting a decline of about 5% in the last 24 hours. The drop triggered more than $111 million in long liquidations, highlighting strong selling pressure in the market.
Analysts suggest that failure to hold above $2,000 confirms structural weakness. If bearish momentum continues, ETH could decline toward the $1,850–$1,750 support zone.
The recent inability to break above the $2,200 resistance level has also weakened bullish sentiment. Declining spot ETF inflows, reduced decentralized exchange activity, and falling futures premiums indicate weakening demand for Ether.
On-chain data further supports this view. Ether’s apparent demand has turned negative, reaching its lowest level in 16 months earlier this month. Although there has been a slight recovery, demand remains below neutral levels.
In addition, spot Ether ETFs have recorded continuous outflows over the past seven days, totaling nearly $392 million, signaling reduced institutional interest in the short term.
Market conditions remain influenced by macroeconomic uncertainty and geopolitical tensions, pushing traders toward a more risk-averse approach.
If ETH continues to trade below $2,000, further downside is likely. A recovery above key resistance levels would be required to restore bullish momentum.