Between 22:00 and 22:15 UTC on June 2, 2026, ETH saw a rapid short-term drop, with a return of -0.60%. The price range was 1,888.83-1,900.41 USDT, with a 0.61% amplitude. This period sits at the end of the Asian trading session and the handover to the start of the European session. Against the backdrop of ETH’s sharp overall decline that day, ETH continued to show weakness.
The main driver of this move was the linkage effect from Bitcoin’s price action. Bitcoin fell by 3% on the day, breaking below the $71,000 key support level and dropping beneath the short-term low of $70,466, emitting a strong bearish signal. As a bellwether for the crypto market, Bitcoin’s decline directly triggered broad market sell-off sentiment. ETH and BTC are highly positively correlated, and during downturns ETH typically falls more, resulting in a synchronized move lower.
Second, bearish technical signals intensified selling pressure. ETH is currently trading about $2,308 below the realized price. The 50-day moving average is at $2,224.51 and continues to trend downward, while the 14-day RSI has dropped to 31.58, entering an oversold zone. The On-Balance Volume (OBV) confirms significant sell-off signals since mid-May. After the bearish flag pattern broke down, it suggests the potential for new lows ahead. On-chain data is also weak: exchange reserves have continued rising, implying more coins are being deployed for liquidity preparation. Stablecoin dominance has reached a local high of 11.11%, reflecting funds flowing out into stablecoin holdings. Although some institutions such as BitMine Immersion increased their holdings by more than 170,000 ETH, the inflow volume is still insufficient to support the price.
Market sentiment became extremely panicked, further amplifying the sell-off. The Fear and Greed Index is in the “extreme fear” zone at 23, and 91% of technical indicators point bearish versus only 9% bullish, forming a negative cycle of “Bitcoin falling → technical breakdown → on-chain selling pressure → fear-driven panic → continued selling.” In the short term, focus on whether Bitcoin can stabilize above $70,000. For ETH, downside support is at $1,850; if that level breaks, it may test the $1,800 psychological integer threshold.
