Ethereum has fallen below the $1,900 level after a fresh wave of selling pushed the second-largest cryptocurrency down more than 5% over the past 24 hours, raising questions about whether buyers can still drive a recovery back above the $2,000 mark.

According to CoinGecko data, ETH was trading near $1,876 at the time of writing after briefly touching the $1,825 region during Tuesday's selloff. 

The decline extended a downturn that has already pulled the asset out of the $2,000 range it held through parts of May.

Pressure on Ethereum has intensified as investors continue pulling money from spot Ethereum exchange-traded funds. 

Data cited by market observers shows spot ETH ETFs have recorded more than two weeks of consecutive net outflows, with roughly $540 million leaving the products over the past month. 

Such large-scale withdrawals have removed a source of buying demand that previously helped support prices during May's rally.

Recent weakness has also coincided with a sharp deleveraging event across the crypto derivatives market. 

More than $1.8 billion in crypto positions were liquidated over the last 24 hours, according to market data, as leveraged long traders were forced out of positions after key support levels broke across major digital assets.

Macroeconomic conditions have added another obstacle.

Market expectations surrounding Federal Reserve policy have become more restrictive under Fed Chair Kevin Warsh, while CME FedWatch data has shown traders increasingly pricing in the possibility of interest rates remaining elevated for longer. 

At the same time, strong performance in US technology stocks has attracted institutional capital away from risk assets such as cryptocurrencies.

Daily chart data suggests Ethereum still faces several hurdles before a return above $2,000 can be sustained.

ETH/USD 1-day price chart. Source: TradingView.

On the 1-day chart, ETH remains below all major exponential moving averages.

The 20-day EMA sits near $2,056, while the 50-day, 100-day, and 200-day EMAs are positioned around $2,148, $2,245, and $2,482, respectively. 

The current alignment of those averages, with shorter-term averages remaining below longer-term ones, points to a market that is still trending lower.

Recent price action shows Ethereum failing to hold above the 20-day EMA before sellers regained control. 

Although buyers defended the $1,825 to $1,850 area during Tuesday's session and lifted the price back toward $1,875, the rebound has not yet altered the sequence of lower highs and lower lows visible on the chart.

The Chaikin Money Flow indicator also remains below zero at approximately -0.08.

While the reading has improved from deeper negative levels seen in May, it still indicates that capital outflows continue to outweigh inflows.

For Ethereum to reclaim $2,000, analysts have argued that the first step would be a recovery through the immediate resistance zone between $1,950 and $1,990. 

Even if that level is cleared, the 20-day EMA near $2,056 and the 100-period Simple Moving Average near $2,088 remain significant barriers. 

Until those levels are broken on stronger buying volume, any move above $2,000 could face renewed selling pressure.

Market observers have also pointed to weakening network activity.

While long-term holder participation has continued to grow, previously cited on-chain data showed monthly active users and transaction activity declining by more than 15% heading into June, suggesting demand has not kept pace with available supply.

Several analysts believe Ethereum is approaching an important decision point.

Trader Tardigrade recently argued that a bear flag structure on Ethereum's higher-timeframe chart is developing in a manner similar to patterns seen before previous major corrections.

ETH/USD 3-day price chart. Source:  Trader Tardigrade on X.

According to the analyst, the setup resembles the structure that preceded Ethereum's 40% decline during the first quarter of 2026 and could indicate one final leg lower before a market bottom forms.

Separately, fellow analyst Ali Martinez has identified the $1,750 to $1,825 area as a critical support region.

According to Martinez, maintaining daily closes above $1,750 could preserve the possibility of rebounds toward $2,073 and $2,360.

However, the analyst warned that a weekly close below $1,850 would increase the likelihood of further declines.

In that scenario, Martinez projected an initial move toward roughly $1,560, while a deeper correction could expose Ethereum to a test of the lower boundary of its long-term range near $1,070.

For now, Ethereum's ability to recover $2,000 appears closely tied to whether ETF outflows begin to stabilize, whether buyers can reclaim key moving averages, and whether support around the $1,750 to $1,850 zone continues to hold.

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