Key facts
- Ether fell to a two-month low below $2,000.
- Approximately $84 million in long ETH bets were liquidated.
- The Coinbase Premium Index for Ethereum fell to approximately -0.16.
- Citigroup projects the tokenized asset market to reach $5.5 trillion by 2030.
- Ethereum is trading below its 50-day, 100-day, and 200-day moving averages.
Ether has fallen to a two-month low below $2,000, with its funding rate climbing to its highest level since August 23, 2025, indicating heavy long positioning. This was followed by the liquidation of approximately $84 million in long ETH bets on June 1. The Coinbase Premium Index for Ethereum has fallen to approximately -0.16, its lowest level since February, reflecting reduced buying activity from US-based participants relative to global liquidity. Despite this price weakness and lack of domestic demand, Citigroup's 'Tokenization 2030' report projects the tokenized asset market to grow from $17 billion to $5.5 trillion by 2030, with estimates ranging from $2.7 trillion to $8.2 trillion. The report highlights US Treasury bills and public equities as key assets for tokenization, with Ethereum positioned as a central platform for these developments, evidenced by Wall Street firms like BlackRock utilizing it for tokenizing money market funds. Ethereum is now trading below its 50-day, 100-day, and 200-day moving averages, confirming bearish momentum. Crypto analyst Rekt Capital has identified a historical pattern where Ethereum closed below its multi-year upward trend line, suggesting a potential rebound similar to early 2026, though previous instances saw limited upside before a downturn. Michael Van De Poppe suggests current price action presents ideal entry opportunities, especially with the CLARITY Act vote potentially creating a 'Sell the rumor, Buy the News' scenario. Large investors, holding 17.41 million ETH (22.03% of total supply), have increased their positions over the last nine weeks, reaching a 10-week high in their holdings' percentage of total supply. Separately, Ethereum price extended its decline, trading below $1,950 and the 100-hourly Simple Moving Average, with a low formed at $1,836. The pair could continue to move down if it stays below the $2,000 zone. Following a recent pullback, Ethereum experienced a 5.5% intraday drop, falling below $1,900 for the first time since late February and reaching a two-month low of $1,880. Market observers note a repeating bearish pattern on the three-day chart, a bear flag formation that previously led to significant corrections. This structure is described as identical to a prior pattern that preceded a bullish rally. Analysts suggest Ethereum must hold the $1,750 support level or reclaim its multi-year uptrend to avoid a deeper correction, with the $1,825 area identified as a potential favorable entry point targeting $2,073 and $2,360. The second-largest crypto by market cap has shed around 13% in seven days, falling to around $1,924 on major exchanges. The daily candles show a clear breakdown from a multi-week consolidation structure that had been holding since February. The catalyst for the sharp drop appears to be a wave of long liquidations, with $1.35 billion worth of long positions wiped out in a single day across the broader crypto market. Ethereum ETF flows have also turned negative, with investors pulling more than $600 million over 12 consecutive days. The Crypto Fear and Greed Index sits at 26, near "Extreme Fear" territory. ETH has now broken below its 20-day, 50-day, 100-day, and 200-day exponential moving averages, with resistance stacking above $2,000. The MACD remains below its signal line with a negative histogram, indicating downward momentum has not faded yet.