On Wednesday, Ethereum extended its prolonged downtrend, crumbling below the key $1,600 price level amid a strengthening USD. The 2nd-largest cryptocurrency by reported market cap is now down a massive 47.4 percent on a year-to-date (YTD) basis.
Analyst highlights $1,500 as key support level
Following its descent below $1,600, crypto analyst Ardi remarked that ETH must not fall below $1,500 at least for the next 4 months. Failure to defend this critical support level could significantly hamper the digital asset’s bullish market structure.
According to the monthly chart, this is the 1st time since April 2025 that ETH is trading at this price level. The digital asset is down a significant 69 percent from its all-time high of $4,946 created in August 2025.
The analyst emphasized that ETH has held every major low since the 2022 bear market bottom during the FTX fiasco. To recall, the cryptocurrency had sunk all the way down to $887 in June 2022.
Meanwhile, crypto trader Umair Orakzai stressed on 2 key ascending flags for ETH on the daily chart. ETH’s recent breakdown from the smaller flag could push it further down to $1,261. The trader said this is not far-fetched given the amount of bearish sentiment surrounding ETH.
Similarly, ETH has also broken down from a bigger flag, which had a channel range between $1,820 to $2,420. From this channel, ETH is eyeing a target of $1,097.
Offering a slightly bullish take, crypto trade Inmortal pointed toward ETH reserves on crypto exchanges nearing their historical low levels. Although they didn’t give any particular number for a bottom, they noted that it is very close – if not already in.
Meanwhile, institutional confidence in ETH remains brittle at best. According to data from SoSoValue, U.S.-based spot ETH exchange-traded funds have now had 7 consecutive weeks of net outflows.
ETH staking continues to trend upwards
There were already some signs of incoming sell-pressure on ETH. On Thursday, ETH exchange reserves on Binance flashed a bearish signal as they surged to 57,700.
That said, some optimism still lingers in the market – especially when considering the proportion of ETH supply locked up in staking. On June 12, ETH staking volume increased to almost 40 million, creating ideal conditions for a potential supply-crunch induced price appreciation.
