Ethereum slid further as bearish signals accumulated across derivatives markets and spot demand appeared to soften. Data tracked by CoinGecko showed the price down 7.2% over seven days to trade near $1,660 on June 24, edging below key technical levels and leaving the $1,611 support area in focus.
Several factors contributed to the latest selloff, including a surge in liquidations on leveraged positions and heightened caution from institutions, where U.S.-listed spot Ether ETFs have recorded net outflows for six straight weeks. Meanwhile, Ethereum’s internal restructuring and weaker broader activity in decentralised finance added to investor concern.
Key takeaways
- Price move: Ethereum fell about 7.2% over seven days, trading near $1,660.
- Catalyst: Derivatives data showed leveraged long positions were hit, with Coinglass estimating around $170 million in liquidations, alongside weak ETF flows and softer network activity.
- Support level: Traders are watching $1,611; a breakdown could extend the selloff.
- Implication: With ETH still below major moving averages on daily and short-term charts, recovery attempts may face renewed selling pressure.
What drove the move
The drawdown intensified after Ethereum wiped out gains from the previous 12 days. According to Coinglass, the Tuesday decline triggered roughly $170 million in liquidations tied to bullish leveraged Ether positions, a sign that bearish momentum moved quickly through crowded positioning.
CoinGecko’s market data also pointed to weakening price momentum, while perpetual futures indicators briefly turned deeply negative. The result, as described in derivatives coverage, was that short sellers were paying to keep positions open—typically consistent with demand for upside exposure fading.
On the fundamental side, uncertainty rose after the Ethereum Foundation confirmed on June 23 that it completed a multi-month reorganization and cut about 20% of its workforce, equivalent to 54 employees across protocol and community teams. Co-founder Vitalik Buterin said the foundation intends to reduce annual spending by 40% this year and maintain a 5% annual budget drawdown after 2030. Traders said the timing mattered: the layoffs landed while Ethereum was already dealing with weaker network activity and ongoing selling from institutional products.
Activity across decentralised applications also softened. DeFiLlama data cited in the report showed total value locked across DeFi fell 23% over three months, reflecting reduced demand for blockchain usage—a key argument investors often use to support exposure to ETH during stronger growth phases.
Market reaction and what it signals
Even with Ethereum’s continued lead in parts of decentralised finance, the market is grappling with questions about whether broader usage is keeping pace with expectations. The report noted that Ethereum still accounts for about $38 billion in DeFi TVL, representing roughly a 53% market share, and that Ethereum plus its layer 2 ecosystem contributes about 43% of decentralised exchange volumes. Still, the same coverage cited criticism that Ethereum has generated only $11 million in fees over the last 30 days.
Institutional flows appeared to reinforce the cautious tone. According to the article, U.S.-listed spot Ether ETFs have posted net outflows for six consecutive weeks, with $910 million leaving the products since mid-May and total net assets falling to $9.4 billion. For many market participants, persistent outflows are read as a sign that demand is not keeping up with selling pressure.
Treasury exposure also entered the debate. The report said BitMine, chaired by Tom Lee, held $9.7 billion in unrealised losses on its Ether reserves while continuing to add to its position. Although the article indicated there was no immediate sign of forced selling, the size of the paper loss could weigh on institutional appetite if risk tolerance tightens.
Macro conditions added another layer of pressure. The report linked the broader risk backdrop to the U.S.-Iran conflict supporting oil prices and keeping inflation concerns in focus, alongside comments from Federal Reserve officials suggesting that expected rate cuts may have been delayed. In that environment, investors may prefer yield-bearing assets over volatile crypto exposure.
Technical picture: where traders are watching
On the daily chart, the article said Ethereum was trading below key moving averages. The 20-day EMA was cited near $1,745, the 50-day EMA near $1,893, the 100-day EMA near $2,057, and the 200-day EMA near $2,333. With price around $1,660, ETH remains below all four levels, leaving the medium-term trend tilted toward sellers.
Momentum indicators also leaned bearish. The daily RSI was reported near 37, below the neutral 50 threshold, even after recovering from early-June oversold levels. The report argued that as long as RSI stays under 50 and ETH remains below the 20-day EMA, the chart does not yet suggest a convincing recovery setup.
On the four-hour view, the same coverage cited additional negative structure: EMA 9 below EMA 21, MACD still below its signal line, and RSI around 36.6, with price trading below VWAP. While the latest decline had not broken the June support floor yet, the indicators suggest short-term sellers remain in control.
In terms of levels, the first support area was highlighted around $1,650, where buyers have attempted to slow the fall. A clean break below that zone would likely bring $1,611 back to the forefront. The article also pointed to resistance between $1,680 and $1,715, followed by a stronger trigger for recovery if Ethereum can reclaim the 20-day EMA near $1,745.
Bigger picture for investors
Despite near-term weakness, Ethereum’s long-term narrative in the report was tied to decentralised finance dominance and the expected Glamsterdam upgrade. The article said the upgrade is anticipated to split block creation, improve security, and increase execution efficiency through parallel transaction processing.
For now, however, the balance of evidence presented in the report—spot weakness, negative ETF flow momentum, elevated liquidation activity, and ETH still below major moving averages—suggests further downside risk remains if buyers fail to defend the $1,611 to $1,650 support zone.
Investors will likely watch whether ETF outflows persist and whether derivatives conditions stabilise after the liquidation wave. On the event calendar, attention may also turn to Federal Reserve communications and upcoming economic data, especially if the market continues reassessing the timing of rate cuts. On Ethereum-specific catalysts, the focus remains on progress toward the Glamsterdam upgrade alongside continuing trends in DeFi activity.
