Ether (ETH) dropped to $1,814 on Wednesday, its lowest in over 14 weeks, raising concerns about whether the ETH/USD pair can stabilize above key liquidity zones near its multi-year lows at $1,800.
ETH/USD 1-hour chart. Source: Cointelegraph/TradingView
Key takeaways:
- Ether fell to a 14-week low near $1,800, with traders warning a breakdown could trigger deeper losses toward $1,200-$1,600.
- The Coinbase Premium Index hit its lowest level since February, signaling persistent weakness in US spot demand.
- Spot Ethereum ETFs logged sixteen straight days of outflows.
Ether sits on weak support at $1,800
Ether’s technical structure has weakened after losing support at $2,000 and $2,200. Note that all the major moving averages lie within this zone on the daily chart.
Today, ETH traded as low as $1,814 on Bitstamp, while the daily relative strength index (RSI) fell to 25, its lowest level since Feb. 6, highlighting strong downside pressure and oversold conditions.
Related: Bitmine buys $52M ETH as Tom Lee says price not yet showing Ethereum’s strength
However, this might also mean that the sellers are losing momentum, suggesting a possible price rebound from current levels, akin to the 39% rebound seen in February.
ETH/USD daily chart. Source: Cointelegraph/TradingView
Traders say Ether’s bullishness hinges on the ETH/USD pair holding above the crucial $1,800 support.
“$ETH almost tapped the $1,800 level today,” analyst Ted Pillows said in a Wednesday post on X, adding:
“This is the last support zone for Ethereum before new lows.”
An accompanying chart revealed that a break below $1,800 would bring areas below $1,700 into the picture.
ETH/USD daily chart. Source: X/Ted Pillows
Additionally, fellow analyst CrypDoMillions said losing $1,800 would send ETH price lower toward $1,600.
ETH/USD daily chart. Source: X/CrypDoMillions
Not all traders had confidence in Ether’s ability to remain above $1,800, with analyst BitFrog saying that “$ETH is on life support” at current levels, adding:
“Bulls better wake up fast. $1,800 looks shaky, honestly.”
The Entity-Adjusted UTXO Realized Price Distribution (URPD) metric, showing at which prices the current set of ETH UTXOs were created, shows that ETH trades above a relatively open zone between $1,800 and $1,250, where there’s less demand.
This means ETH may move more into this range if the sell-off continues, with the downside possibly capped at $1,200. This is where investors acquired more than 1.4 million ETH.
ETH: Entity-Adjusted URPD. Source: Glassnode
Meanwhile, Ether’s cost-basis distribution heatmap shows weak accumulation between $1,200 and $1,800, suggesting a potential pathway toward the lower zone in the short term.
Ether’s Coinbase Premium falls to February levels
The Ethereum Coinbase Premium Index, which tracks the price difference between ETH on Coinbase and Binance, dropped to -0.16 on May 28, before recovering to -0.13.
A deeply negative premium confirms that the selling pressure is originating from US entities. The last time the metric was this negative was during the early February sell-off when ETH price dropped to multi-year lows at $1,750.
Historically, extreme negative premiums often coincided with capitulation phases, as seen in April 2025 and during the 2022 bear market.
This implies that as long as US investors sell at a discount compared to the global market, the bears remain in control.
Ethereum Coinbase Premium Index. Source: CryptoQuant
“Coinbase Premium has fallen into a notable discount, signaling potential weakness in spot demand,” crypto investor and trader Thomas The Trader said in an X post on Tuesday.
“ETH Coinbase Premium just reached its lowest point since February,” analyst Inoms said in a Monday X post, adding:
“The message is clear: US demand is still weak.”
Weak US demand is also evidenced by heavy outflows from US-based spot Ethereum exchange-traded funds (ETFs). These ETFs have posted outflows for sixteen consecutive days, the longest losing streak since March 2025.
Investors have withdrawn nearly $847.2 million from these investment products over this period, according to data from SoSoValue.
Spot Ethereum ETFs flows chart. Source: SoSoValue
Coupled with more than $257.3 million in outflows from global Ethereum investment products last week, this points to institutional selling, which will likely continue to put pressure on the price in the near term.
