Ethereum Price Drops Below $2,000 Amid Weakening On-Chain Activity

Ethereum's price plummeted below the crucial $2,000 threshold for the first time since March, exacerbating concerns about the cryptocurrency's stability. The sharp decline has been fueled by a combination of factors, including weakening on-chain activity, ETF outflows, and renewed geopolitical tensions.

According to data from CoinGecko, Ethereum (ETH) dropped to an intraday low below $1,970 on Wednesday after losing a key psychological support zone that had held for nearly two months. This decline has been accompanied by increased selling pressure, with total market capitalization falling 3.43% to $2.46 trillion.

Arab Chain reported that Ethereum exchange withdrawals over the past 30 days dropped to around 16.05 million ETH, the lowest reading since June 2024. This data suggests that fewer investors are moving ETH off centralized platforms for long-term holding, especially during periods of weak price action. Binance recorded the largest Ethereum withdrawals at roughly 7 million ETH.

On the technical front, Ethereum remains under pressure on the daily chart after falling below all major exponential moving averages (EMAs). The Relative Strength Index (RSI) has also weakened further, placing Ethereum in oversold territory. However, momentum indicators have not yet shown a clear reversal signal.