Ethereum slips below key support as ETF outflows extend to fourth day
The second-largest cryptocurrency by market capitalization has fallen below its 200-day simple moving average, with analysts citing geopolitical tensions and shifting developer focus as key headwinds.
Ethereum’s price fell nearly 2 per cent over 24 hours to US$1,670 on June 24, remaining below the US$1,700 support level and its 200-day simple moving average. The decline coincides with US$82 million in net outflows from Ethereum exchange-traded funds on June 23, marking the fourth consecutive day of withdrawals. The asset has also dropped 7 per cent over the past week, reflecting tepid investor sentiment across the digital asset sector.
The move below the 200-day simple moving average signals short-term technical weakness, according to market observers. While some market participants have declared a bottom in the price of ETH, others argue that the asset must break above US$1,800 to regain upward momentum. This divergence in outlook highlights the uncertainty surrounding the asset’s near-term trajectory.
Analysts attribute the current weakness to broader crypto market uncertainty linked to geopolitical tensions in Iran and the outlook for US interest rates. The situation in Iran has contributed to a risk-off environment, while expectations surrounding US monetary policy continue to weigh on speculative assets. Additionally, there is a noted shift in developer activity towards artificial intelligence projects, which some analysts suggest is drawing attention and capital away from established blockchain ecosystems.
Ethereum previously reached an all-time high of US$4,953.73 on 24 August last year. The current price action represents a significant contraction from those levels, as the asset struggles to find a stable floor amidst sustained outflows from institutional investment vehicles. The continued redemptions from ETFs suggest that institutional investors remain cautious, prioritising capital preservation over exposure to digital assets in the current macroeconomic climate.
Other movements in the broader financial landscape include Ripple’s valuation at US$50 billion, Eightco securing a US$125 million investment from Bitmine and ARK Invest, and the New York Stock Exchange investing US$600 million in Polymarket. These developments occur against a backdrop of shifting global trade dynamics, including a summit between US and Chinese leaders addressing trade, artificial intelligence, and the Strait of Hormuz.
