Ether collapsed below $2,100 as sellers seized control across major exchanges. Binance recorded heavy sell pressure while ETF outflows accelerated, creating a perfect storm for bears.
The token's decline reflects broader weakness in institutional flows. Ethereum spot ETFs, which launched with fanfare earlier this year, reversed course with consistent daily redemptions. Traders interpreted the outflows as a sign that large holders are cutting exposure ahead of further downside.
On-chain data showed concentrated selling at Binance, signaling that whales and retail traders alike dumped positions at lower prices. The move through $2,100 breached a key technical level that had held through recent volatility. Multiple traders called the shift a regime change, noting that bears now controlled momentum after weeks of sideways trading.
The timing compounds losses for ETH holders already under pressure from Bitcoin's underperformance. While BTC held relatively stronger levels, Ether's steeper drawdown suggests investors are rotating out of altcoins entirely. Layer-2 tokens and other Ethereum-dependent assets fell in sympathy.
Analysts flagged $1,850 as the next major support if selling accelerated. Some pointed to macro headwinds. The broader crypto market faced headwind from traditional finance volatility and persistent rate-hike concerns. Stablecoin flows also tightened, reducing liquidity for traders seeking to buy dips.
Funding rates on derivatives exchanges turned negative, a contrarian signal suggesting shorts were heavily leveraged. However, traders warned that liquidations below $2,000 could cascade if stop losses triggered en masse. The lack of bounce attempts near support suggested conviction on the sell side.
Recovery paths appeared limited in the near term. Ether needed to recapture $2,150 to reverse the downtrend on daily charts. Until then, bears controlled the narrative