Ethereum (ETH) Faces Critical $2,100 Support as $1.7B in Liquidations Loom

Table of Contents Ethereum maintains a precarious position just above the $2,100 threshold as market participants monitor multiple risk factors threatening further downside movement. On Wednesday, ETH was changing hands around $2,129, marking approximately a 12% retreat from its recent peak near $2,420. The decline coincided with US Treasury yields surging to 4.58%, their most elevated reading in recent months, after inflation figures exceeded market expectations. Rising yields typically drive capital toward traditional safe-haven assets and away from cryptocurrency markets. The spot Ethereum ETF market compounded selling pressure. Data from May 21 revealed $33M in net redemptions from ETH ETFs, extending a persistent pattern of consecutive outflow days. Bitcoin ETFs experienced similar headwinds with $101M in withdrawals on the same date, while Solana ETFs bucked the trend with $4M in positive inflows. Arthur Hayes, BitMEX co-founder, highlighted a fundamental issue with current ETF structures. “Ethereum ETFs still lack the structural yield advantage many institutions expected,” Hayes noted. “Until staking is integrated into these products, capital allocation will remain skewed toward Bitcoin.” Thursday brought reports suggesting the US and Iran are approaching a ceasefire agreement, with Pakistan serving as mediator. The proposed arrangement allegedly includes a collaborative oversight framework for the Strait of Hormuz. In response to these developments, US crude oil prices retreated from above $100 to approximately $96. Thomas Lee, BitMine Immersion Chairman, commented on X that conflict resolution could have a “decisive” effect on oil valuations — with downstream consequences for Ethereum. “Higher oil equals higher probability of Fed hikes,” Lee stated. “And ETH and crypto prices are linked to monetary liquidity. Thus, crypto will be inversely correlated to oil.” Lee’s company, BitMine, maintains the largest corporate Ethereum holdings, with approximately 5.278 million ETH in its treasury. Market analyst Ted Pillows struck a more cautious tone in his X post: “This doesn’t look good for $ETH. Ethereum needs to hold above the $2,100 level, or things could get ugly.” His assessment echoes widespread trader sentiment that the $2,100 zone represents a crucial battleground. Examining the daily timeframe, Ethereum has violated support from an ascending channel pattern and currently trades beneath its 20-, 50-, and 100-day exponential moving averages, which form a resistance cluster between $2,225 and $2,326. The MACD indicator has crossed into negative territory, validating bearish momentum. Blockchain metrics reinforce concerns. Wallet addresses containing over 10,000 ETH have declined to their lowest count in approximately 10 months. Simultaneously, net ETH deposits to centralized exchanges have reached their highest levels since early 2025 — suggesting accumulating sell-side pressure. According to CoinGlass analytics, more than $1.7B in leveraged long positions are concentrated between the $2,044 and $2,000 price levels. A breakdown below this range could initiate a liquidation cascade. Over the past 24 hours alone, ETH witnessed $47.9M in total position liquidations. Immediate support zones to monitor include $2,080, with subsequent levels at $1,909 and $1,800.